MicroStrategy Raises $1 Billion, Buys $458.2 Million More in Bitcoin
MicroStrategy raised $1 billion through a recent corporate bond sale. About $500 million was spent on bonds, the remaining amount was used to buy Bitcoin.
In the latest announcement on the evening of September 20, 2024, billionaire Michael Saylor, owner of software company MicroStrategy, said that he had completed the issuance of $1.01 billion in convertible corporate bonds with an interest rate of 0.625%/year due in 2028. This means that the amount of money that MicroStrategy raised is more than the expected $700 million plan announced 3 days ago.
The net proceeds from the bond issuance are approximately $997.4 million, after deducting discounts and related expenses. MicroStrategy used the proceeds to buy back all $500 million of its 6.125% bonds due in 2028, and used the remainder to buy more Bitcoin and other purposes.
This brings the company's total Bitcoin holdings to 252,220, with an average purchase price of $39,266 per BTC, representing an increase of about 3% from the 244,800 BTC recorded a week ago. MicroStrategy's total Bitcoin portfolio is now posting a return of nearly 60%.
MicroStrategy seriously entered the Bitcoin market in August 2020, with its first investment worth $250 million. Since then, despite continuous losses, they have continuously added Bitcoin to their reserves and announced that they have no plans to sell Bitcoin.
