MicroStrategy Buys $786 Million of Bitcoin With Proceeds From Convertible Note Sale

- MicroStrategy Inc. bought approximately $786 million in Bitcoin with the proceeds raised from the sale of convertible notes.

(Bloomberg) -- MicroStrategy Inc. bought about $786 million in Bitcoin with the proceeds from the sale of convertible notes.

Most Read from Bloomberg

Car Dealerships Across US Halt Services After Cyberattack

Putin’s Hybrid War Opens a Second Front on NATO’s Eastern Border

Hedge Fund Talent Schools Are Looking for the Perfect Trader

Car Dealers Across US Are Crippled by a Second Cyberattack

What to Know About the Deadly Flesh-Eating Bacteria Spreading in Japan

The company disclosed in a filing Thursday with the US Securities and Exchange Commission that it acquired 11,931 Bitcoin between April 27 and June 19. This is MicroStrategy’s third largest acquisition of Bitcoin following its $821 million purchase of 12,000 tokens on March 11.

The company has repeatedly tapped the debt market to snap up more of the cryptocurrency this year, spending over $2.4 billion on Bitcoin in 2024 alone.

The purchases brought MicroStrategy’s total Bitcoin holdings to 226,331, which are valued at about $14.9 billion. However, MicroStrategy has only spent $8.3 billion on the cryptocurrency, giving the company an 80% paper gain on its investments.

Michael Saylor, the chairman and co-founder of MicroStrategy, began buying Bitcoin in 2020 as an inflation hedge and an alternative to holding cash. The cryptocurrency is up about 600% since Saylor began purchasing it.

The move to buy up Bitcoin has also propelled the share price of MicroStrategy, which has soared more than 1,000% since Saylor’s decision. The stock wavered between gains and losses on Thursday as Bitcoin steadied.

--With assistance from Tom Contiliano.

(Updates with details throughout.)

Most Read from Bloomberg Businessweek

Ilya Sutskever Has a New Plan for Safe Superintelligence

JPMorgan Ignites $40 Billion Rush Into Indian Bonds

Documents Show How Musk’s X Plans to Become the Next Venmo

Coke—and Dozens of Others—Pledged to Quit Russia. They’re Still There

Google DeepMind Shifts From Research Lab to AI Product Factory

©2024 Bloomberg L.P.