On March 6, MicroStrategy, the company led by famous Bitcoin maximalist Michael Saylor, announced plans to raise $600 million. The funds raised will be used, among other things, to acquire more BTC. The company currently holds 193,000 coins on its balance sheet.
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MicroStrategy's $600 million in notes
According to a press release, the company will issue $600 million in notes to "qualified institutional buyers", with maturity set for March 15, 2030. Interest will be paid semi-annually, starting September 15, 2024. MicroStrategy intends to spend the raised funds "to acquire additional Bitcoin and for general corporate purposes".
Interestingly, the company is ready to spend funds to buy BTC, even at the historical highs for the price of the first cryptocurrency. However, judging by the stock price, MicroStrategy appears to be in good financial health. As you can see in the daily chart above, the stock hit its highest since February 9, 2021, on March 4, reaching a value of $1359.91. Moreover, their price has outperformed Bitcoin in terms of returns from the beginning of February to the present, with their value up almost 150%.
MicroStrategy's Bitcoin portfolio
MicroStrategy has been actively buying Bitcoin since 2020. Currently, the company holds 193,000 coins. That said, the average acquisition cost per BTC stands at about $31,780. The screenshot below from saylortracker site shows a detailed graph of all Bitcoin purchases made by Microstrategy, plotted against BTC's price. Additionally, a dotted line represents the average dollar value of these purchases.
As of today, with the Bitcoin price at around $66,500, the company has an unrealised profit of $6.871 billion. Despite this, Michael Saylor continues to increase his investment in BTC and has no intention of selling it.
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