MicroStrategy Raises $800 Million to Acquire More Bitcoin

MicroStrategy Raises $800 Million to Acquire More Bitcoin

MicroStrategy, a business intelligence firm, has continued on its path to expand its Bitcoin treasury. As per the report, the firm has recently completed a $800 million funding round after convertible note sales.

MicroStrategy to Expand Its Bitcoin Treasury

The proceeds from the sales are going to go towards purchasing Bitcoin and general expenditure. The biggest public holder of Bitcoin completed the convertible notes offering to expand its Bitcoin treasury.

The firm made the announcement on 20th June noting that the sale was successfully completed. Furthermore, the firm also announced a 2.25% offering from convertible senior notes that are due on 2032.

With this sale, the overall principal price of notes sold recently by the firm is estimated to be around $800 million. This amount is also inclusive of $100 million of notes with allowance of purchase options for holders. The initial purchase date for announcement note investors falls on June 17th and 18th subsequently.

According to the firm’s projections, the net funding from the sales was estimated to be around $786 million. This net amount is derived after the difference of first purchase discounts, estimated offering cost, and commission fees. The firm intends to use the net funds from note sales to purchase more Bitcoin units and dedicate the remainder for general purposes.

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MicroStrategy Sticks with Bitcoin DCA Purchase Policy

MicroStrategy is a firm that faced a lot of criticism for its decision to heavily invest in Bitcoin during the bear market. However, the firm has continued to stick with its original plan and recently added an additional 11,931 Bitcoins estimated to be around $786 million.

The fund was collected from sales of $800 million convertible notes and additional funds. The firm acquired the latest installment of Bitcoins at $65,883 per unit.

On 20th June, MicroStrategy reported 226,331 Bitcoins in their treasury. At the market price, the stash is estimated to be around $8.33 billion with an even $36,798 per Bitcoin.

MicroStrategy has become one of the biggest Bitcoin holders among private businesses around the globe. The firm designated Bitcoin its primary reserve token in 2020. Since that time, the firm has continued to add more Bitcoins to its treasury in installments.

Before, the uptrend in digital asset markets recently MicroStrategy reported a loss of $53 million for the first quarter of 2024. However, the loss was short-lived and the firm moved into profit sooner than later.

As per the report, Bitcoin has appreciated by 700% since 2020. At the same time, MS head Saylor has continued with the policy to raise funds via convertible notes to purchase more Bitcoins. On the other hand, MS shares have performed positively in the aftermath of its Bitcoin bets.

Michael Dell Prompts Followers to Invest in Bitcoin

A latest message posted on X by Michael Dell has prompted investors to purchase Bitcoin. As per the post, Dell recently dedicated $2.1 billion in cash from Dell Technologies stock holdings. The post suggests that the founder and CEO of Dell Technologies might consider investing in Bitcoin.  In a 21st June post, he noted that scarcity creates value.

His tweet also got attention from Michael Saylor. Since 2018, Dell stock has gained five times in terms of price momentum. During the last 18 months, the class C common stock of the firm went from $40 to $145 per unit. He has recently withdrawn $2.1 billion in cash while retaining 58% of ownership. It means that he can use his funds to invest in Bitcoin.

Joe Consorti, a Bitcoin layer analyst, noted in case Dell Technologies decided to invest 1% of their portfolio in the form of Bitcoin it could be a major positive change. He noted that at the time tech firms, such as Dell, have excess cash on their hands on account of the AI boom. He pointed out that Dell Tech is a $5.83 billion potential investor that can stir the Bitcoin market.

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