MicroStrategy's Strategic Bitcoin Acquisition and Financing Milestones

Convertible Senior Notes Offering

MicroStrategy Inc., a prominent business intelligence firm, recently completed a significant financial maneuver with its private offering of convertible senior notes. The offering, finalized on March 8, 2024, featured a 0.625% coupon and a notable 42.5% conversion premium over the last reported sale price of the company's class A common stock. The market responded positively, leading to an upsized total of $800 million in aggregate principal amount. This increase included the initial purchasers' option to acquire an additional $100 million in notes, culminating in net proceeds of approximately $782 million for MicroStrategy.

Strategic Bitcoin Acquisition

Capitalizing on the funds raised, MicroStrategy embarked on an aggressive Bitcoin acquisition strategy. Between February 26 and March 10, 2024, the company invested approximately $821.7 million in acquiring around 12,000 bitcoins. This purchase utilized $781.1 million from the convertible notes offering, supplemented by $40.6 million in excess cash. The average acquisition price was around $68,477 per bitcoin, factoring in all associated fees and expenses.

Expanding Bitcoin Holdings

As a result of these transactions, by March 10, 2024, MicroStrategy and its subsidiaries held a substantial portfolio of approximately 205,000 bitcoins. The total acquisition cost for these holdings amounted to roughly $6.91 billion. The average purchase price across all transactions was approximately $33,706 per bitcoin, highlighting the company's strategic investment in digital assets.

MicroStrategy's financial strategies underscore its commitment to leveraging market opportunities and expanding its cryptocurrency portfolio, reflecting a robust approach to capital allocation and growth.