MicroStrategy completes $800M note offering to buy more Bitcoin

MicroStrategy, one of the world’s largest public holders of Bitcoin (BTC), has completed another convertible notes offering to acquire more BTC.

On June 20, MicroStrategy officially announced that the company completed its previously announced offering of 2.25% convertible senior notes due 2032.

The aggregate principal amount of the notes sold in the offering was $800 million, including $100 million of notes issued pursuant to an option to purchase. The announcement notes that the initial purchasers exercised the purchase agreement in full on June 17, with another additional purchase occurring on June 18.

MicroStrategy bought 11,931 BTC for $786 million from the offering

The net proceeds from the sale of the notes were approximately $786 million after deducting the initial purchasers’ discounts and commissions and estimated offering expenses payable by MicroStrategy.

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

Related: MicroStrategy and Michael Saylor settle tax case for $40M

In a separate announcement, MicroStrategy reported that it acquired an additional 11,931 Bitcoin for $786 million using proceeds from convertible notes and excess cash at the price of $65,883 per BTC. As of June 20, MicroStrategy holds a total of 226,331 BTC acquired for roughly $8.33 billion at the average price of $36,798 per BTC.

MicroStrategy is one of the largest identified Bitcoin holders in the world. Formerly led by its founder, Michael Saylor, MicroStrategy entered the Bitcoin market in August 2020 with a $250 million BTC purchase. Since making Bitcoin its “primary reserve currency” in 2020, MicroStrategy has been regularly buying Bitcoin in batches.

MicroStrategy reported $53 million loss in Q1 2024

In 2024, Saylor was also regularly announcing fundraisers targeting billions of dollars through private convertible notes. One such offering was completed in March 2024, generating $604 million to purchase 9,245 BTC. A few days before that sale, MicroStrategy completed a $800 million convertible note offering, adding 12,000 BTC to its Bitcoin treasury reserve.

Despite heavily investing in Bitcoin — which has surged roughly 700% since early 2020 — MicroStrategy continued to report massive losses in 2024. With a reported net loss of $53.1 million in the first quarter of 2024, MicroStrategy is yet to adopt the new digital asset fair value accounting standard, which would consider BTC price movement in market value.

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