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HomeCrypto NewsMarketMicroStrategy Buys 12,000 More Bitcoin for $821M, Now Holds 205,000 BTC

MicroStrategy Buys 12,000 More Bitcoin for $821M, Now Holds 205,000 BTC

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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.

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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.

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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.

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.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Sam Wisdom Raphael
Sam Wisdom Raphael
Sam Wisdom Raphael is a seasoned crypto news writer and journalist with 5 years of experience covering blockchain, DeFi, and crypto developments. Sam's active presence in the crypto community complements his deep understanding of the crypto space, allowing him to craft comprehensible price analysis reports and tackle technical blockchain concepts.

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