MicroStrategy, a prominent business intelligence firm, has significantly expanded its Bitcoin holdings, bringing the total to 214,246 Bitcoins. With an average purchase price of $35,160 per Bitcoin, the company has cumulatively invested $7.5 billion, establishing its Bitcoin assets as over 1% of the entire Bitcoin market. This investment has led to an estimated unrealized profit margin of approximately $6 billion.
The acquisition was funded through a combination of sources, including $592.3 million secured via the company’s latest convertible debt offering, along with $30.7 million allocated from surplus cash reserves.
Despite the strategic move and the completion of a $603.7 million convertible debt offering, MicroStrategy experienced a 13% decline in stock value on Tuesday, coinciding with a decrease in Bitcoin’s value. This downturn follows closely behind another convertible debt offering of $800 million completed just the previous week.
MicroStrategy has outlined its repayment strategy for the borrowed funds, setting a unique approach to pay back the debt by September 15, 2030. The company plans to allow investors to swap the cash they lent for MicroStrategy shares, subject to specific rules governing the timing and conditions of such exchanges.
Under the terms, investors will receive 0.43 of a MicroStrategy share for every $1,000 lent to the company. This arrangement enables investors to potentially receive shares valued at approximately $2,327.21 in lieu of cash repayment, contingent upon certain conditio
