Reveals plans to spend $600 million on Bitcoin.

Sona59

The intelligent software company MicroStrategy, renowned for its investment in Bitcoin, has announced plans to double down on its Bitcoin holdings. Specifically, the company revealed that it will privately issue $600 million worth of convertible senior notes by 2030 to reserve more Bitcoin.

On the other hand, the price of Bitcoin is experiencing significant surges as it approaches historical highs.

MicroStrategy Aiming to Acquire More Bitcoin
MicroStrategy stands as one of the largest public Bitcoin holders. The company has been a long-time supporter of Bitcoin, with former CEO Michael Saylor referring to Bitcoin as the digital synthetic equivalent of gold. Starting in August 2020, the company began purchasing over $250 million worth of Bitcoin, and it has not slowed down since. Interestingly, the company continued to hold Bitcoin assets during the bear market of 2022, even as other companies like Tesla were selling off their holdings.

The recent proposal from MicroStrategy indicates its continued interest in acquiring more Bitcoin. Specifically, the company disclosed that the net proceeds from the sale of these $600 million convertible senior notes will be used to purchase additional Bitcoin.

The press release states, "MicroStrategy also intends to grant to the initial purchasers of the notes the right to purchase, within a 13-day period beginning on and including the first day on which the notes are issued, up to an additional $90 million principal amount of notes."

MicroStrategy's Bitcoin Bet Pays Off
As disclosed, MicroStrategy currently holds 193,000 bitcoins, acquired at an average purchase price of $31,554.00 per bitcoin, with a total cost of $6.09 billion. Interestingly, the company's bet on Bitcoin has paid off, with the current value of its Bitcoin holdings surpassing the $10 billion mark.

As the world's largest cryptocurrency, Bitcoin has shown strong performance in recent months, with institutional investors continuing to invest in Bitcoin through spot Bitcoin ETFs. Consequently, Bitcoin has experienced a surge this year, resulting in profits for most holders. At the time of writing, the trading price of Bitcoin is $66,780, representing a 56% increase in the past 30 days. This means that MicroStrategy's Bitcoin holdings are currently valued at $12.9 billion, with unrealized profits of $6.815 billion. Bitcoin is currently surpassing its historical high of $68,826.

MicroStrategy's Bitcoin bet has also positively impacted its stock price. MicroStrategy's stock price surged 24% on Monday to $1,334, marking a 94% increase since the beginning of the year.

Samiksha

Indeed, that comes with a significant high cost.

Ritu77

It's also making a huge profit.