“MicroStrategy Completes $800 Million Bond Sale to Add More Bitcoin to its Reserves”
MicroStrategy, a US-based software technology company, has successfully concluded a new $800 million convertible bond offering, with the proceeds intended to add another 12,000 BTC to its Bitcoin reserve. The company had announced its intention to conduct a bond offering on March 6th, coinciding with Bitcoin hitting an all-time high. The private placement was completed on March 8th, raising a total of $800 million.
MicroStrategy’s founder and chairman, Michael Saylor, confirmed on Twitter that the proceeds from the bond issuance and excess cash reserves had been used to purchase an additional 12,000 Bitcoin at an average price of $68,477 per BTC. Prior to this latest Bitcoin purchase, MicroStrategy held approximately 193,000 BTC, acquired at an average price of $31,544, representing a balance of $12.9 billion and an unrealized profit of 112%.
The latest bond offering by MicroStrategy carries an annual interest rate of 0.625% and is payable semi-annually in March and September from September 2024 onwards. The bonds are convertible into cash, MicroStrategy stock, or a combination of both.
This move by MicroStrategy reflects its continued bullish stance on Bitcoin as a long-term store of value and hedge against inflation, despite the associated risks of debt financing.