Posted on

Brace For Impact: MicroStrategy Is Planning Another $500 Million Bitcoin Purchase

American business intelligence and software development company, MicroStrategy has unveiled new plans to acquire an additional Bitcoin, further bolstering its already substantial BTC holdings.

MicroStrategy Mega Bitcoin Purchase In The Works

In a recent press release published on MicroStrategy’s official website, the software development company announced plans to raise $500 million in convertible debt offerings to purchase more Bitcoin. Just a few days ago the company had sold approximately $800 million in convertible debt offerings, using the proceeds of the sale to acquire about 12,000 BTC valued at about $821.7 million at the time. 

Quite frankly, MicroStrategy seems to be on a full-blown Bitcoin acquisition spree, potentially attributed to the cryptocurrency’s massive bullish rallies recently and its surge to new all-time highs. As of March 11, 2024, the business intelligence firm possesses a total of 205,000 BTC, worth over $15 billion based on CoinMarketCap’s Bitcoin price of $73,411, at the time of writing.  

With its latest purchase of 12,000 BTC, MicroStrategy has finally surpassed the Bitcoin holdings of BlackRock’s Spot Bitcoin Exchange Traded Fund (ETF). Additionally, the software development company has secured the top position as the leading public company with the largest Bitcoin holdings, surpassing the holdings of both Tesla and Coinbase.

As of March 2024, MicroStrategy’s market capitalization has surged to $29.96 billion, reflecting an increase of 10.85% in the last 24 hours. The company is also presently ranked as the world’s 642nd most valuable company by market capitalization. 

MicroStrategy Sets Sights On Convertible Senior Notes Offerings

Since the start of the year, MicroStrategy has purchased nearly 16,000 BTC. This time around the company has chosen to raise capital through convertible senior notes, marking a shift from the previous year when most of its funds for acquiring BTC were generated from equity. 

According to Market Watch’s report, the business intelligence firm’s stock value has also been on the rise recently, with MSTR prices witnessing an impressive 145% increase in a month. 

As stated in its press release, the company intends to sell convertible senior notes to qualified institutional buyers. MicroStrategy has revealed plans to grant early purchasers of the notes an option to buy up to an additional $75 million worth of the notes within 13 days after the initial issuance. 

The software development firm has disclosed that the notes will remain unsecured, with interests payable semi-annually starting in September 2024. Additionally, MicroStrategy will have the right to redeem the notes from March 2028 or holders can request for the company to make a repurchase, with conversion terms determined at the offering’s prices.

The proceeds and excess funds generated from its upcoming $500 million convertible senior notes sale will be used to expand MicroStrategy’s Bitcoin holdings and for general corporate purposes. 

Bitcoin price chart from Tradingview.com

Posted on

Bitcoin Whale Books $217 Million Profit After BTC Broke $73,000

The ongoing Bitcoin surge is proving lucrative for a crypto whale. According to Lookonchain data on March 13, one large BTC address has raked in $217 million in profits after prices rose above $73,000 earlier today. Profits would have even been higher because, over the past, the whale has been unloading large amounts via Binance, the world’s largest crypto exchange. 

Crypto whale accumulating BTC | Source: Lookonchain via X

This development follows Bitcoin’s solid growth. Since October 2023, the coin has been steadily rising, fueled by supportive fundamental events, including interest rate expectations from the United States Federal Reserve and the approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC). 

BTC Is Rallying, Whale Books $217 Million Profit

Coupled by bullish holders, expecting more gains ahead and after halving, the coin has been rapidly inching higher, exceeding expectations. The previous all-time high of around $72,800 was broken on March 13 when the coin broke higher, rallying above $73,000.

Bitcoin price trending upward on the daily chart | Source: BTCUSDT on Binance, TradingView

This expansion comes after a strong price correction in the New York session on March 12. However, with confidence still in the market, prices rallied strongly during the Asian market, pushing prices above $72,800 to as high as $73,700. 

While traders clipped fluctuations, the anonymous whale took full advantage of the rally after months of HODLing. Lookonchain data shows that the whale began accumulating Bitcoin on August 24, 2023, at an average price of $32,854, before withdrawing and depositing 4,300 BTC at an average price of $3,534. 

BTC whale booking profits | Source: Lookonchain via X

The address currently controls 4,300 BTC worth over $313 million and is $217 million in profits. The whale withdrew 100 BTC worth $7.22 million via Binance on March 13, possible to book profits. 

BlackRock And Wall Street Driving Bitcoin Demand

Whether the whale will withdraw more and consolidate profits remains to be seen. However, considering the overall optimism across the market, the address could register more gains. 

The crypto community expects the deluge of capital from institutions to continue in the weeks ahead. So far, BlackRock, through its IBIT spot Bitcoin exchange-traded fund (ETF) product, controls over 205,000 BTC. There is more demand from other issuers like Fidelity and Ark Invest. 

Beyond that, the rising demand from pension funds, mainly in the United States, would further drive prices higher, lifting HODLers’ valuation. This week, the business intelligence firm MicroStrategy said it was also buying more coins after raising $800 million from investors.

Posted on

MicroStrategy Increases Bitcoin Bet With $822M Purchase, Adds 12,000 BTC To Treasury

As Bitcoin (BTC) continues its unprecedented uptrend, surging to a new all-time high (ATH) of $72,300, software company MicroStrategy remains steadfast in its vision. It is reaping substantial rewards from its strategic investment in the largest cryptocurrency in the market. 

MicroStrategy, led by renowned Bitcoin supporter and former CEO Michael Saylor, recently made a major acquisition, further solidifying its position in the digital asset market.

MicroStrategy Bitcoin Investment Pays Off

According to a filing with the US Securities and Exchange Commission (SEC), MicroStrategy acquired approximately 12,000 BTC between February 26, 2024, and March 10, 2024, for approximately $821.7 million in cash. The average purchase price per Bitcoin was $68,400. 

Additionally, MicroStrategy recently completed an offering of convertible senior notes due 2030, raising $800 million in funds. With this latest acquisition, MicroStrategy’s Bitcoin holdings now stand at a staggering 205,000 BTC, acquired for $6.9 billion.

Microstrategy

MicroStrategy’s stock trades at $1,557, representing a remarkable 9% gain within 24 hours. The company’s shares have demonstrated a sustained and continuous upward trajectory since February 26, coinciding with Bitcoin’s $50,000 consolidation phase breakthrough. 

Over two weeks, Bitcoin surged to its present trading price, establishing a notable correlation between the leading cryptocurrency and MicroStrategy. This correlation has further solidified the company’s strategy and contributed to its stock’s performance.

MicroStrategy’s strategic investment in Bitcoin has yielded remarkable results. The company now boasts a profit of $7.7 billion on its Bitcoin holdings, which translates to a remarkable return of 112% so far as Bitcoin breaks new all-time highs.

ETF Expert Astounded By Bitcoin ETF Success

The rapid rise of Bitcoin Exchange-Traded Funds (ETFs) has surpassed even the most optimistic projections. Bloomberg ETF expert Eric Balchunas highlighted the growth of these funds in a recent post on social media site X (formerly Twitter). The expert noted that assets under management (AUM) surpassed $55 billion, and trading volume reached an impressive $110 billion. 

Microstrategy

Balchunas acknowledged that achieving such numbers in just two months was nothing short of “absurd,” far exceeding what would normally be considered successful even at the end of a full year.

In addition, in a surprising turn of events for the ETF expert, Blackrock’s IBIT ETF and Fidelity’s FBTC have emerged as the leaders among all ETFs in terms of year-to-date (YTD) flows through the middle of March. This unexpected feat positions these Bitcoin ETF offerings as major players in the ETF market, attracting the attention and interest of investors seeking exposure to the digital asset.

Microstrategy

Currently, BTC continues its uptrend, aiming to solidify and consolidate above the $70,000 threshold, which would put the cryptocurrency in a good position to reach the $100,000 mark in the rest of the year. 

Featured image from Shutterstock, chart from TradingView.com

Posted on

MicroStrategy’s Bitcoin Holdings Balloons Above $10 Billion, Here’s How Much Profit It Has Made

MicroStrategy recently revealed that they had acquired an additional 3,000 BTC this month, bringing its Bitcoin holdings to 193,000 BTC. Interestingly, BTC’s recent price surge caused these holdings to cross the $10 billion mark, with the software company currently sitting on a tremendous amount of unrealized profits. 

MicroStrategy’s Unrealized Profit Reaches $5 Billion

As disclosed in the company’s filing with the Securities and Exchange Commission (SEC), its BTC holdings have now been purchased for an average price of $31,544. That means that MicroStrategy’s Bitcoin investment is now at an unrealized profit of almost $5 billion, considering Bitcoin is trading just above $57,000. 

MicroStrategy’s ‘Bitcoin strategy,’ spearheaded by its co-founder Michael Saylor, began as far back as 2020 when the company started investing in the flagship crypto token. Saylor saw this as a way to hedge against inflation and diversify the company’s cash reserves. Since then, Saylor and his company have continued to accumulate Bitcoin aggressively. 

Saylor’s faith in Bitcoin was tested when the company’s investment was at an unrealized loss during the height of the crypto winter when BTC traded below the $30,000 price level. Despite that, Saylor and MicroStrategy stayed true to their Bitcoin Strategy. Instead of selling, they saw it as an opportunity to accumulate more BTC.

Saylor also recently made it clear that he and his company have no intention of liquidating their BTC holdings anytime soon, stating that “Bitcoin is the exit strategy.” This sentiment undoubtedly provides a bullish narrative for the flagship crypto, especially considering what could happen to the market if the company offloads its Bitcoin. 

MicroStrategy is currently the largest corporate holder of BTC and is leading the charge as institutional demand for BTC continues to increase. This demand has mainly come from the Spot Bitcoin ETFs, which together hold more BTC than MicroStrategy combined. 

Spot Bitcoin ETFs Trading Volume Surpass $2 Billion Again

Bloomberg analyst Eric Balchunas revealed that the newly listed Bitcoin ETFs once again surpassed the $2 billion mark on February 27. This was the second consecutive day they achieved this, having recorded an all-time high of $2.4 billion in trading volume on February 26. Specifically, the world’s largest asset manager, BlackRock, seems to be having a run of its own. 

Balchunas noted that BlackRock had broken its record again, with the iShares Bitcoin ETF (IBIT) recording a trading volume of $1.3 billion on February 27. The impressive demand for these funds is believed to be another reason why BTC’s price has continued to rally. 

At the time of writing, Bitcoin is trading at around $57,100, up in the last 24 hours, according to data from CoinMarketCap.  

Bitcoin price chart from Tradingview.com