MicroStrategy has again augmented its Bitcoin holdings, recently procuring 12,000 tokens for $821 million, with its total balance surging to 205,000 BTC.
Michael Saylor, founder and executive chairman at MicroStrategy, spotlighted this in a post on X today. This disclosure follows the company’s announcement on March 4 regarding their intention to invest $600 million, derived from the sale of convertible notes, into acquiring Bitcoin.
MicroStrategy has acquired an additional 12,000 BTC for ~$821.7M using proceeds from convertible notes & excess cash for ~$68,477 per #bitcoin. As of 3/10/24, $MSTR hodls 205,000 $BTC acquired for ~$6.91B at average price of $33,706 per bitcoin. https://t.co/YayyKtpz8d
— Michael Saylor⚡️ (@saylor) March 11, 2024
For the uninitiated, convertible notes are financial instruments that companies use to raise funds. Essentially, they are loans that can be converted into company stock at a later date.
MicroStrategy Buys 12,000 BTC with $821M+
MicroStrategy has now announced the purchase of more Bitcoin tokens a few days after the convertible notes disclosure. The acquisition, which took place between Feb. 26 and March 10, 2024, involved a cash outlay of $821.7 million.
Per a press release, the funding for this acquisition predominantly stemmed from the proceeds of a private offering of convertible senior notes, totaling $781.1 million, complemented by an additional $40.6 million drawn from the company’s excess cash reserves.
With the latest BTC purchase, MicroStrategy’s total bitcoin holdings have reached 205,000 BTC, with only 5,000 BTC left for the company to hold 1% of the total BTC supply. They acquired the 205K BTC with a total of $6.91 billion, factoring in an average price of around $33,706 per Bitcoin.
Their Bitcoin bag is now worth $14.6 billion, marking an unrealized profit of $7.69 billion. Notably, the latest buying spree began on the same day MicroStrategy last announced its previous purchase. Recall that the firm disclosed on Feb. 26 that it sold its shares to buy 3,000 more BTC.
Saylor Says Bitcoin Will “Eat” Gold
Speaking on the recent purchase and Bitcoin’s latest all-time high above $72,000, Saylor told CNBC that Bitcoin is poised to “eat” gold. According to him, the digital asset boasts all the positive aspects of gold but does not possess the downsides of the previous metal.
🚨BREAKING: Michael @saylor says #Bitcoin is going to "eat" gold live on @SquawkCNBC 👀 pic.twitter.com/dOeKYJbRaw
— Simply Bitcoin (@SimplyBitcoinTV) March 11, 2024
Saylor argued that Bitcoin would siphon capital from other risk assets and traditional risk ETFs. He noted that the crypto asset would get incorporated into multiple funds such as the BlackRock Global Opportunities Fund. “As it goes into other funds, it’s going to become structural,” Saylor remarked.
He called attention to the upcoming halving, slated for next month, pinpointing the supply-demand imbalance that would emerge. According to Saylor, Bitcoin’s price would have to adjust higher in response to the confluence of massive demand and limited supply.
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