MicroStrategy Incorporated (Nasdaq: MSTR) announced plans today to issue $500 million in convertible senior notes due 2032. The move underscores the company’s ongoing commitment to bolster its Bitcoin holdings, despite the volatility surrounding the cryptocurrency market.
MicroStrategy owns a massive 214,400 bitcoins
The announcement comes as MicroStrategy continues to double down on its Bitcoin investment strategy, with the firm already owning a massive 214,400 bitcoins as of May 1, 2024.
Notably, MicroStrategy’s average purchase price for Bitcoin stands at $35,158.00 USD per Bitcoin, amounting to a total investment of $7.538 billion USD. This aggressive accumulation of Bitcoin has solidified MicroStrategy’s position as one of the most significant institutional holders of the cryptocurrency.
| Date | Total Bitcoin Holdings |
| 4/1/2024 – 5/1/2024 | 214,400 bitcoins |
| March 19, 2024 | 214,246 bitcoins |
| March 11, 2024 | 205,000 bitcoins |
| February 26, 2024 | 193,000 bitcoins |
| February 6, 2024 | 190,000 bitcoins |
| December 27, 2023 | 189,150 bitcoins |
| November 30, 2023 | 174,530 bitcoins |
| November 1, 2023 | 158,400 bitcoins |
| September 24, 2023 | 158,245 bitcoins |
| August 8, 2023 | 152,800 bitcoins |
| 4/29/2023 to 6/27/2023 | 152,333 bitcoins |
| April 5, 2023 | 140,000 bitcoins |
| March 23, 2023 | 138,955 bitcoins |
| December 24, 2022 | 132,500 bitcoins |
| December 22, 2022 | 131,690 bitcoins |
| 11/01/2022 to 12/21/2022 | 132,395 bitcoins |
| September 20, 2022 | 130,000 bitcoins |
| June 28, 2022 | 129,699 bitcoins |
| May 7, 2022 | 129,218 bitcoins |
| January 31, 2022 | 125,051 bitcoins |
| December 30th, 2021 | 124,391 bitcoins |
| 11/29/2021 to 12/08/2021 | 122,478 bitcoins |
| November 29th, 2021 | 121,044 bitcoins |
| September 13th, 2021 | 114,042 bitcoins |
| June 21st, 2021 | 105,085 bitcoins |
| May 18th, 2021 | 92,079 bitcoins |
| May 13th, 2021 | 91,850 bitcoins |
| April 5th, 2021 | 91,579 bitcoins |
| March 12th, 2021 | 91,326 bitcoins |
| March 5th, 2021 | 91,064 bitcoins |
Financial Innovation and Risk
The convertible notes, to be offered to qualified institutional buyers, are expected to bear interest semi-annually and mature in 2032. MicroStrategy intends to utilize the net proceeds from this offering to further augment its Bitcoin holdings, along with funding general corporate purposes.
While some may perceive this move as a bold bet on the future of Bitcoin, it aligns with MicroStrategy’s steadfast belief in the long-term potential of the cryptocurrency as a store of value and hedge against inflation.
The decision to issue convertible notes reflects MicroStrategy’s confidence in Bitcoin’s ability to generate returns that outweigh the cost of capital over the long run.
More Companies started to adopt Bitcoin as a primary treasury reserve asset
MicroStrategy’s relentless pursuit of Bitcoin as a treasury reserve asset stands in contrast to the traditional approach of most companies. However, it’s not alone in its conviction. Recent trends indicate a growing acceptance of Bitcoin as a legitimate asset class among institutional investors.
DeFi Technologies, another notable firm, recently joined the ranks of Bitcoin adopters by allocating a portion of its treasury reserves to Bitcoin. The company purchased 110 Bitcoins earlier this month to initiate this strategy, reflecting their confidence in Bitcoin’s potential to safeguard against inflation and monetary debasement.
Pharma company Semler Scientific recently invested an additional $17 million into Bitcoin, bringing their total Bitcoin holdings to 828 coins, valued at $57 million.
Despite lingering regulatory uncertainties and periodic market fluctuations, MicroStrategy’s unwavering commitment to Bitcoin underscores the evolving narrative surrounding cryptocurrencies.
Read Also: MicroStrategy Continues Its Bold Bitcoin Strategy Despite Posting Substantial Loss in Q1 2024