MicroStrategy Expands Bitcoin Portfolio with $458.2M Purchase

Business intelligence firm MicroStrategy spent nearly $458.2 million on Friday, September 20, buying approximately 7,420 Bitcoin (BTC) tokens.

The Virginia-based company disclosed this acquisition in a recent regulatory filing with the US Securities and Exchange Commission (SEC).

MicroStrategy Grows Bitcoin Portfolio

MicroStrategy recently announced the pricing of its $875 million offering of 0.625% Convertible Senior Notes, which will be sold privately to qualified institutional buyers. These notes can be converted into cash or MicroStrategy stock (MSTR).

In a press release on Friday, the company confirmed it completed the sale on Thursday, raising $1.01 billion in total, including $135 million from an option to purchase additional notes. Part of the proceeds from this sale went towards a Bitcoin purchase on September 20.

Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know

According to an SEC filing, the average purchase price for the Friday acquisition was $61,750 per BTC, inclusive of fees and expenses. With this latest purchase, MicroStrategy and its subsidiary now hold approximately 259,640 Bitcoins.

“As of September 19, 2024, MicroStrategy, together with its subsidiaries, held an aggregate of approximately 252,220 bitcoins, which were acquired at an aggregate purchase price of approximately $9.90 billion and an average purchase price of approximately $39,266 per bitcoin, inclusive of fees and expenses,” an excerpt in the filing read.

MicroStrategy issued $700 million in convertible notes to expand its Bitcoin holdings and reduce debt. Part of the funds will be used to redeem $500 million in Senior Secured Notes and release collateral, highlighting the firm’s strategy of leveraging debt to grow its Bitcoin portfolio while managing existing debt obligations. Since 2020, MicroStrategy has employed this approach, raising billions of dollars to acquire Bitcoin.

“As of 9/19/2024, we hodl 252,220 BTC acquired for approximately $9.9 billion at an average price of around $39,266 per Bitcoin,” MicroStrategy founder and chairman Michael Saylor disclosed on Thursday.

At its current pace, MicroStrategy may soon match BlackRock’s Bitcoin portfolio, which holds 357,550 BTC, according to Arkham data. Meanwhile, Bitcoin’s appeal has extended beyond corporations to governments and kingdoms.

For instance, the Kingdom of Bhutan holds approximately 13,029 BTC, surpassing El Salvador’s portfolio of around 5,800 BTC. Notably, the US remains the largest governmental holder of Bitcoin, with around 213,246 BTC, followed by China, which holds 190,000 BTC.

Read more: Who Owns the Most Bitcoin in 2024?

Amidst rising demand, Bitcoin is currently trading at $62,837, reflecting a modest increase since the opening of Friday’s session.