Business intelligence firm MicroStrategy spent nearly $458.2 million to buy about 7,420 Bitcoin (BTC) on Friday, September 20.
The Virginia-based company recently disclosed the acquisition with the U.S. Securities and Exchange Commission (SEC).
MicroStrategy Now Holds 252,220 Bitcoins
MicroStrategy recently announced the pricing of its $875 million 0.625% convertible senior notes, which will be sold privately to qualified institutional investors. The notes are convertible into cash or MicroStrategy shares (MSTR).
In a press release Friday, the company confirmed it completed the sale on Thursday, raising a total of $1.01 billion, including $135 million in additional bond purchase options. Some of the proceeds from the sale were used to purchase bitcoin on Sept. 20.
Read more: How to Buy Bitcoin (BTC) and All You Need to Know
According to the SEC report, the average purchase price for Friday’s purchase was $61,750 per BTC, including fees and expenses. With this latest purchase, MicroStrategy and its subsidiaries now hold approximately 252,220 Bitcoin.
“As of September 19, 2024, MicroStrategy together with its subsidiaries held approximately 252,220 Bitcoins, representing a total purchase price of approximately $9.9 billion and an average purchase price of approximately $39,266 per Bitcoin, including fees and expenses,” an excerpt from the report states.
MicroStrategy has issued $700 million in convertible bonds to increase its Bitcoin holdings and reduce its debt. Part of the proceeds will be used to repay $500 million in senior secured bonds and de-collateralize them. This highlights the company’s strategy of using debt to grow its Bitcoin portfolio while managing its debt obligations. Since 2020, MicroStrategy has raised billions of dollars using this approach to acquire Bitcoin.
“As of September 19, 2024, we have acquired approximately 252,220 BTC for approximately $9.9 billion, at an average price of approximately $39,266 per Bitcoin,” said Michael Saylor, founder and chairman of MicroStrategy.
Current trends suggest that MicroStrategy could soon catch up with BlackRock’s Bitcoin portfolio of 357,550 BTC. Meanwhile, Bitcoin’s appeal has expanded beyond corporations to governments and kingdoms.
For example, the Kingdom of Bhutan holds around 13,029 BTC, which is more than El Salvador’s portfolio of around 5,800 BTC . The United States is the largest government Bitcoin holder, holding around 213,246 BTC, followed by China, which holds 190,000 BTC.
Read more: Who will own the most Bitcoin in 2024?
As demand increases, Bitcoin is currently trading at $62,837, up slightly since the session opened on Friday.
