MicroStrategy's Bitcoin Bonanza: Over $14 Billion in Holdings as Company Raises $800 Million in Convertible Notes

MSTR Bolsters BTC Portfolio with $786M Purchase, Holdings Surpass 1% of BTC Supply

Valued at around $786 million at the time of purchase, this latest acquisition of 11,931 Bitcoins adds significantly to MicroStrategy’s substantial existing collection. With this addition, the company’s total Bitcoin holdings now stand at 226,331, building on their previous stash of 214,400 Bitcoins, valued at over $14 billion, making it the largest public-listed holder of Bitcoin. The company started accumulating the leading cryptocurrency in 2020, adopting it as a primary reserve asset.

MicroStrategy has acquired an additional 11,931 BTC for ~$786.0M using proceeds from convertible notes & excess cash for ~$65,883 per #bitcoin . As of 6/20/24, $MSTR hodls 226,331 $BTC acquired for ~$8.33B at average price of $36,798 per bitcoin.https://t.co/jE9dGqqnON

— Michael Saylor⚡️ (@saylor) June 20, 2024

Purchased at an average price of about $65,914 per Bitcoin, this acquisition of 11,931 Bitcoins follows closely on the heels of another significant buy — 9,245 Bitcoins between March 11 and March 18. With these purchases, MicroStrategy’s total Bitcoin holdings now exceed 1% of the entire BTC supply.

These moves are in line with the firm’s recent statements about its intention to continue expanding its investments in the leading cryptocurrency.

Announcing $500M Convertible Note Offering to Buy More Bitcoin

On June 13, 2024, the pro-Bitcoin firm announced plans to issue $500 million in convertible senior notes. This move was aimed at raising funds to finance further acquisitions of assets.

The convertible senior notes, set to mature in 2032, will be offered privately to institutional investors who meet certain criteria, including those classified as ‘qualified institutional buyers’ under Rule 144A of the Securities Act of 1933. This offering is subject to market conditions and other considerations.

According to the company:

“The notes will be unsecured, senior obligations of MicroStrategy and will bear interest payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2024. The notes will mature on June 15, 2032, unless earlier repurchased, redeemed or converted in accordance with their terms.”

MicroStrategy highlighted that the proceeds from the sale of the convertible senior notes will be used to further expand its Bitcoin treasury by acquiring additional BTC, in addition to funding general corporate purposes.

Saylor Endorses Trump’s Crypto Vision Amid $40M Tax Settlement

MicroStrategy Chairman Michael Saylor publicly endorsed the cryptocurrency vision of presidential election candidate Donald Trump.

#Bitcoin is in the national interest. pic.twitter.com/ncRJnfnjMc

— Michael Saylor⚡️ (@saylor) June 15, 2024

It’s noteworthy that alongside endorsing Trump’s cryptocurrency vision, MicroStrategy Chairman Michael Saylor has agreed to pay $40 million to settle a lawsuit. This legal action, initiated by the D.C. attorney general, accused him of defrauding the city of millions in taxes by falsely claiming residency in Virginia or Florida, as detailed in the agreement.

"We want all the remaining #Bitcoin to be made in the USA." – Donald J. Trump pic.twitter.com/h1DtiaPNmm

— Michael Saylor⚡️ (@saylor) June 12, 2024

Under the settlement agreement, both Michael Saylor and MicroStrategy, the business software company he founded in 1989, deny any violation of District law and do not admit to any wrongdoing.

In a statement released on Monday, Saylor explained that he relocated to Florida in 2012, making Miami Beach his home. He stated;

“I continue to dispute the allegation that I was ever a resident of the District of Columbia. I have agreed to settle this matter to avoid the continued burdens of the litigation on friends, family, and myself.”

MicroStrategy clarified that the tax issue was a personal matter concerning Michael Saylor, emphasizing that the company was not involved in managing his daily affairs or overseeing his individual tax responsibilities. The company also noted that under a separate agreement between MicroStrategy and Saylor, he would pay the full settlement amount to the District.

In the legal proceedings, attorneys from the attorney general’s office contended that Saylor resided in a 7,000-square-foot penthouse on the Georgetown waterfront or on yachts docked in the Potomac River. Despite this, they pointed out that from 2005 through 2021, he did not pay any income tax to the city.

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About the Author

Teuta Franjkovic

Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear. Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3. An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.

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