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This Institutional Investor Is Raising $600 Million to Buy Bitcoin

2 mins
Updated by Ciaran Lyons
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In Brief

  • MicroStrategy plans to raise $600 million through convertible senior notes to bolster its Bitcoin holdings amid rapid price growth.
  • Currently holding 193,000 Bitcoin valued at around $13.19 billion, MicroStrategy aims to fund additional acquisitions.
  • Saylor's firm commitment to crypto drives MicroStrategy's consistent Bitcoin accumulation strategy, even amid market fluctuations.
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Michael Saylor’s institutional investment firm, MicroStrategy, announced its plan to increase its Bitcoin holdings amidst the digital asset’s price surge.

MicroStrategy aims to raise $600 million for the acquisition. Presently, the firm holds 193,000 Bitcoin, valued at approximately $13.19 billion.

MicroStrategy Will Use Senior Convertible Notes

In a recent statement, institutional investment firm MicroStrategy outlined its intention to to fund the additional Bitcoin through convertible senior notes.

“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes.”

Convertible senior notes are a type of debt security that can be converted into equity later.

The $600 million in notes will be sold to those people reasonably believed to be qualified institutional buyers under United States securities laws.

“As an operating business, we are able to use cashflows as well as proceeds from equity and debt financings to accumulate bitcoin, which serves as our primary treasury reserve asset.”

The statement further declares that it will be unsecured senior obligations of MicroStrategy and will bear interest payable semi-annually in arrears on two occasions each year, beginning on September 15, 2024.

Read more: 7 Best Crypto Exchanges in the USA for Bitcoin (BTC) Trading

Recently, MicroStrategy has maintained a consistent pattern of acquiring more Bitcoin.

MicroStrategy Steadily Acquires Bitcoin

Meanwhile, on February 7, BeInCrypto reported that MicroStrategy purchased an additional 850 Bitcoins for $37.2 million.

MicroStrategy Bitcoin Holdings Chart. Source: Bitcoin Treasuries
MicroStrategy Bitcoin Holdings Chart. Source: Bitcoin Treasuries

Furthermore, the firm capitalized on market volatility, securing an average purchase price lower than Bitcoin’s current value.

“31,755 bitcoins acquired since the end of Q3 for $1.25 billion, or $39,411 per bitcoin.”

This aligns with Saylor’s commitment to Bitcoin in various market conditions, including both bullish and bearish trends.

In June 2023, Saylor boldly stated that the next phase for Bitcoin, valued at approximately $25,900 at the time, would involve a tenfold increase.

Read more: Bitcoin Price Prediction 2024/2025/2030

This projection suggests a potential price point of around $250,900.

As MicroStrategy holds prominence in the Bitcoin industry, investors closely observe its actions as part of their market research.

Exploiting this, hackers recently breached Saylor’s X account, promoting a fraudulent phishing link. Consequently, his followers fell victim to losses of approximately $440,000.

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Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.