MicroStrategy has acquired an additional 7,420 Bitcoin (BTC) for $458.2 million between Sept. 13 and Sept. 19, at an average price of $61,750 per BTC, according to a Securities and Exchange Commission (SEC) filing on Friday.
This latest transaction brings MicroStrategy’s total Bitcoin holdings to 252,220 BTC, valued at roughly $15.8 billion. The company’s cumulative investment in Bitcoin, including fees and expenses, totals around $9.9 billion, with an average purchase price of $39,266 per BTC, according to the company’s founder and executive chairman, Michael Saylor.
This announcement follows news of MicroStrategy completing a $1.01 billion upsized private offering of convertible senior notes due 2028, with a 0.625% coupon and a 40% conversion premium. The company plans to use the proceeds from the offering to fully redeem its $500 million senior secured notes due 2028, a process expected to be completed on Sept. 26.
Any remaining funds from the net proceeds will be allocated toward acquiring additional Bitcoin and for general corporate purposes. Upon the redemption of the senior secured notes, the collateral backing these notes, including approximately 69,080 BTC valued at $4.4 billion, will be released, according to the filing.
MicroStrategy’s latest Bitcoin acquisition follows its recent purchase of 18,300 BTC for $1.1 billion between Aug. 6 and Sept. 12, reflecting the company’s ongoing strategy of expanding its Bitcoin holdings.
Despite the latest Bitcoin acquisition, MicroStrategy’s stock remained relatively flat in pre-market trading on Friday, down 0.3% at $144.26. The stock is up 3.5% over the past month and has surged 108.9% year-to-date.
Since its initial Bitcoin investment, MicroStrategy has significantly outperformed the S&P 500 index, with its stock price rising by more than 1,000%, far exceeding the returns of the broader market.
In its Q2 earnings call, MicroStrategy posted losses of $5.74 per share on a quarterly revenue of $111.4 million, a 7% decline year-over-year.
Meanwhile, the world’s largest corporate Bitcoin holder, revealed a net loss of $123 million in Q2, a slight improvement from its net loss of $137 million in the same quarter of 2023. The frim shared that its total holdings of 226,500 Bitcoin had been acquired for $8.5 billion at an average price of $36,821 per Bitcoin.
MicroStrategy also unveiled a new key performance indicator called “Bitcoin Yield,” representing the percentage change over time in the ratio between the firm’s Bitcoin holdings and its diluted outstanding shares. Diluted shares outstanding include all of the company’s common stocks and any additional shares created from convertible notes or exercising stock options.
