MicroStrategy, a software company, has revealed plans to further strengthen its position in Bitcoin by offering $600 million in convertible senior notes due 2030. This move comes as Bitcoin’s price surges towards a new all-time high.
MicroStrategy, a major Bitcoin advocate, has continuously added to its Bitcoin holdings since August 2020 when it initially invested over $250 million. Despite market fluctuations, the company retained its Bitcoin assets through the bear market of 2022, distinguishing itself from others like Tesla who sold off their holdings.
The recent announcement confirms MicroStrategy’s intention to expand its Bitcoin holdings further. The proceeds from the notes issuance will be used to acquire more Bitcoin.
In addition to the offering, MicroStrategy has granted initial purchasers an option to buy an additional $90 million worth of notes within a specified period.
MicroStrategy: A Lucrative Bitcoin Investment
MicroStrategy’s Bitcoin holdings now stand at 193,000 bitcoins acquired at an average price of $31,554 per Bitcoin, totaling $6.09 billion. The value of these holdings has now surpassed $10 billion, showcasing a profitable venture into Bitcoin.
Following institutional investments and the growth of Spot Bitcoin ETFs, Bitcoin has been on a bullish streak. Currently trading at $66,780, Bitcoin has seen a 56% increase in the past month, boosting MicroStrategy’s holdings to $12.9 billion with an unrealized profit of $6.815 billion. The cryptocurrency is edging closer to its all-time high of $68,826.
MicroStrategy’s Bitcoin investment has also had a positive impact on its stock price, with shares rising by 24% to $1,334 and experiencing a 94% increase since the start of the year.
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