MicroStrategy Continues to Raise $500 Million to Acquire More Bitcoin

In a pre-dawn announcement on March 14, MicroStrategy revealed plans to offer nearly $600 million in convertible bonds maturing in 2031.

MicroStrategy Continues to Raise $500 Million to Acquire More Bitcoin. Image: Tipranks

According to the latest statement, MicroStrategy intends to raise an additional $500 million through convertible bonds, with the proceeds earmarked for purchasing more Bitcoin (BTC).

These bonds are set to mature on March 15, 2031, and will pay investors interest semi-annually. Purchasers have the option to convert some or all of the bonds into cash.

Last week, the company successfully completed an issuance of $800 million in convertible bonds (initially planned for $600 million). Just days ago, MicroStrategy acquired an additional 12,000 Bitcoin for $821.7 million.

Assuming Bitcoin remains around the current $73,000 mark, the company could potentially acquire around 6,800 more coins with the proceeds from the new bond offering.

MicroStrategy began investing in Bitcoin consistently since 2020, holding through prolonged periods of losses. Currently, MicroStrategy owns approximately 205,000 Bitcoin, valued at around $15 billion USD. With an average purchase price of $33,928 USD, the giant has realized over 115% in profits, marking approximately $8 billion USD in gains from its "all in" Bitcoin strategy.

MicroStrategy's Bitcoin Acquisition History. Source: Saylor Tracker (March 14, 2024)

MSTR shares have surged more than 10% in the past 24 hours, and year-to-date, MSTR has risen by 170%, mirroring the record price fluctuations of Bitcoin, which recently set a new all-time high around $73,000 USD.

Recent Price Movement of MicroStrategy's MSTR Stock in the Last 24 Hours. Source: Google Finance

However, MicroStrategy is not the only cryptocurrency-focused company borrowing additional funds to expand operations amidst the surging digital asset market. Yesterday, Coinbase also announced a $1 billion USD bond offering.