MicroStrategy raises $3 Billion to buy more Bitcoin
The company’s total Bitcoin holdings had grown to 331,200 BTC
The funds were secured through the issuance of zero-coupon convertible bonds with a 55% premium and a maturity date in 2029.
Initially, MicroStrategy aimed to raise $1.75 billion. However, due to high investor demand, the company increased the offering first to $2.6 billion and later to $3 billion.
On November 18, MicroStrategy announced the acquisition of 51,780 BTC worth approximately $4.6 billion at an average price of $88,627 per Bitcoin between November 11 and November 17.
MicroStrategy to continue acquisitions
Following this, co-founder and Executive Chairman Michael Saylor stated that the company’s total Bitcoin holdings had grown to 331,200 BTC, valued at about $29.7 billion at the time.
The company’s total investment in Bitcoin now amounts to approximately $16.5 billion, with an average purchase price of $49,874 per Bitcoin, including fees and expenses.The new Bitcoin acquisitions using the proceeds from the bond issuance are expected to be completed by the end of this week.
However, some analysts have raised concerns about the risks associated with MicroStrategy’s aggressive leveraging. Ryan Lee, chief analyst at Bitget Research, pointed out that while the company’s move aligns with Bitcoin’s upward momentum, its heavy reliance on debt could pose challenges in a prolonged bear market. “This level of exposure is a double-edged sword. While it amplifies gains during rallies, it could strain the company if the market reverses,” Lee stated.
