MicroStrategy has purchased an additional 11,931 BTC valued at $786 million, days after floating a convertible notes offering.
Following the recent purchase, MicroStrategy now holds 226,331 BTC purchased at an average price of $36,798 per BTC.
MicroStrategy Expands Bitcoin Portfolio with $786M Purchase
MicroStrategy’s Executive Chairman, Michael Saylor, confirmed the recent purchase on X, saying it bought the coins at $65,883 per coin.
The recent purchase comes after the business intelligence firm closed a private offering for convertible senior notes.
The notes had $800M as the aggregate principal amount. The sale generated $786M in net proceeds, with the entire sum going towards buying BTC.
“The net proceeds from the sale of the notes were approximately $786.0 million, after deducting the initial purchasers’ discounts and commissions and estimated offering expenses payable by MicroStrategy,” the company said.
MicroStrategy is now among the biggest Bitcoin holders globally. The firm has been gradually accumulating BTC since August 2020.
The company also treats Bitcoin as its “primary reserve currency” and holds it in its balance sheet.
The recent bet on Bitcoin comes as the BTC price continues to take a beating. BTC is down by 4% in the last 24 hours. The coin was trading at $63,675 at 08:12 a.m. EST.
Despite MicroStrategy’s multi-million dollar bet, inflows into Bitcoin products continue to slow down. Spot Bitcoin exchange-traded funds (ETFs) have seen consistent outflows over the past week amid the recent price decline.
MicroStrategy Continues to Post Losses
While MicroStrategy sits at a significant unrealized profit on its Bitcoin holdings, the same cannot be said for its financials.
During the first quarter of 2024, MicroStrategy posted a net loss of $53.1 million. The net loss followed a $191.6M digital asset impairment loss during the quarter.
The loss was a ten-fold increase from the first three months of 2023.
The company’s revenues also failed to fair well during the quarter after recording a 5.5% year-over-year drop to $115.2 million.
However, MicroStrategy has yet to adopt a new digital asset fair value accounting standard to consider BTC’s price increase.
The firm received approval to use this accounting standard in December 2024.
Despite the financial outlook, MicroStrategy’s stock is among the top-performing stocks this year, attributed mainly to BTC’s price increase. $MSTR is up by over 360% over the past year.
