MicroStrategy finalizes 800 million note offering for additional Bitcoin purchases

MicroStrategy, a prominent holder of Bitcoin, has successfully completed another offering of convertible notes to acquire more BTC. The company announced on June 20 that it had finalized the offering of 2.25% convertible senior notes due in 2032. The total principal amount of the notes sold was $800 million, including $100 million issued through an option to purchase. The initial purchasers exercised the purchase agreement in full on June 17, and an additional purchase took place on June 18. With the proceeds from the notes sale, MicroStrategy purchased 11,931 BTC for $786 million. After deducting discounts, commissions, and expenses, the net proceeds amounted to approximately $786 million. The company plans to use these funds to acquire more Bitcoin and for general corporate purposes. In a separate announcement, MicroStrategy revealed that it had acquired an additional 11,931 Bitcoin for $786 million using the proceeds from the convertible notes and excess cash. As of June 20, MicroStrategy now holds a total of 226,331 BTC, acquired for approximately $8.33 billion, with an average price of $36,798 per BTC. MicroStrategy, under the leadership of its founder Michael Saylor, has been a major player in the Bitcoin market since August 2020 when it made a $250 million BTC purchase. Since then, the company has regularly been purchasing Bitcoin in batches and has become one of the largest holders of the cryptocurrency. Despite its significant investments in Bitcoin, MicroStrategy has reported substantial losses in 2024. In the first quarter of that year, the company reported a net loss of $53.1 million. It has yet to adopt the new digital asset fair value accounting standard, which would consider the market value of BTC in assessing its financial status.