“MicroStrategy announced the purchase of an additional 7,420 BTC for $458.2 million at a price of ~$61,750 following the sale of $1.01 billion of 0.625% APR convertible senior notes due 2028. MicroStrategy has acquired 7,420 BTC for ~$458.2 million at ~$61,750 per #bitcoin and has achieved BTC Yield of 5.1% QTD and 17.8% YTD. As of 9/19/2024, we hodl […]”, — write: businessua.com.ua
MicroStrategy announced the purchase of an additional 7,420 BTC for $458.2 million at a price of ~$61,750 following the sale of $1.01 billion of 0.625% APR convertible senior notes due 2028.
MicroStrategy has acquired 7,420 BTC for ~$458.2 million at ~$61,750 per #bitcoin and has achieved BTC Yield of 5.1% QTD and 17.8% YTD. As of 9/19/2024, we hodl 252,220 $BTC acquired for ~$9.9 billion at ~$39,266 per bitcoin. $MSTR https://t.co/JUtgztpzBu
— Michael Saylor⚡️ (@saylor) September 20, 2024
The net proceeds from the sale of securities were approximately $997.4 million. $500 million will be used to repay the remaining principal amount of senior secured notes due 2028 with a coupon rate of 6.125%.
Upon redemption, the security of the paper is unlocked, which is approximately 69,080 BTC.
The rest of the money was directed to the purchase of bitcoin and corporate purposes. The firm’s balance sheet already holds 252,220 BTC, bought for $9.9 billion at an average rate of ~$39,266 per coin. Their value at the current price of the first cryptocurrency of $62,900 is ~$15.86 billion.
On September 16, MicroStrategy announced a $700 million bond offering to “acquire additional bitcoins and finance corporate purposes.” Later, the target threshold was raised to $875 million.
The bonds mature on September 15, 2028, unless they are redeemed or converted early. The company may redeem all or any portion of the issue for cash on or after December 20, 2027, subject to certain conditions.
Holders will have the right to require MicroStrategy to repurchase all or any portion of their securities on September 15, 2027.
At maturity, holders may convert the notes into cash, MicroStrategy Class A common stock or a combination thereof at the option of the issuer.
We will remind, on September 13, MicroStrategy reported on the purchase of an additional 18,300 BTC for $1.1 billion.
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