MicroStrategy’s Bitcoin Buying Spree Continues: Plans to Raise Additional $500M

• MicroStrategy is reportedly planning to raise $500 million to buy more Bitcoin after recently adding 12,000 BTC to its portfolio. 
• According to Michael Saylor, Bitcoin has all the good attributes of gold and appears more convenient. 

In a strategic maneuver reflecting the growing confidence in digital assets, Michael Saylor’s MicroStrategy has once again grabbed headlines with its latest Bitcoin acquisition plans. The company was recently in the news for acquiring 12,000 Bitcoins for almost $822 million ($68,477 per unit).

According to reports, MicroStrategy has accumulated 205,000 Bitcoins since 2020 at an average cost of $6.95 billion ($33,928 per unit) in 36 different transactions and dates. The total Bitcoin holdings of the company are currently worth around $15.12 billion. Crypto News Flash reported that MicroStrategy purchased 16,130 BTC at $36,785. 

Cumulatively, it has made a profit of $8.16 billion, representing 117.3%. This almost doubles its profit recorded in late February as formerly reported by Crypto News Flash. 

With the Bitcoin price predicted to go as high as $150k, MicroStrategy has been reported to be looking forward to raising $500 million to make additional purchases. To sustain its Bitcoin strategy, it is offering Convertible Senior Notes which will be due in 2031. According to the official statement, the offer would be accessible to only qualified institutional buyers.

The earlier announcement stated that the company would offer $600 million in convertible senior notes due in 2030. However, this has been updated to $700 million. According to reports, the idea is to raise more money to buy more Bitcoins, underscoring its commitment to its crypto strategy and confidence in its potential. 

For now, the notes would go for an initial interest rate of 0.625% per annum, payable semi-annually. Earlier purchasers have been given the option to buy an additional $100 million worth of notes in a 13-day window right after issuance. It is important to note that holders have been granted the right to repurchase on September 15, 2028. 

Michael Saylor of MicroStrategy Throws More Light on its Bitcoin Strategy

The company’s long-term interest in Bitcoin is reflected in the statements of its Executive Chairman Michael Saylor. In a recent interview, Saylor compared Bitcoin to gold, claiming it has all the good attributes of gold with none of the defects of the world’s most valuable asset. Elaborating on this, Saylor stated that gold cannot be easily moved from New York to Tokyo in a few minutes.

However, Bitcoin can. Saylor further spoke on the upcoming Bitcoin halving event which would reduce crypto block reward by half. In a nutshell, only 450 new Bitcoins would enter the market from the current 900 Bitcoins. To be able to meet investors’ demand, the price of Bitcoin would be appreciated according to Saylor. On the company’s Bitcoin strategy, he disclosed that there is no intention to sell. 

We think Bitcoin is the highest form of property, the apex property in the world, and it’s the best investment asset. So the endgame is to acquire more Bitcoin. Whoever gets the most Bitcoin wins. There is no other endgame. We believe that the highest, best use of bitcoin is to buy bitcoin and hold the bitcoin.”

Currently, Bitcoin is yielding good returns as the asset dominates the crypto market with a 66% surge from year-to-date, trading at $73,394. According to CoinMarketCap, Bitcoin makes up 51% of the total market share with a market cap of $1.45 trillion.