Bitcoin (BTC) continued to surge this week, breaking through the $68,000 mark this morning. MicroStrategy, the publicly traded company with the most Bitcoin holdings globally, saw its stock price soar by nearly 23.6% on Monday, closing at $1,334, its highest closing price in 24 years. Additionally, the company announced today that it will issue $600 million in corporate bonds to further increase its Bitcoin holdings.
Background:
BTC Soars! Michael Saylor’s Wealth Increases by £700 Million in Three Days, MicroStrategy Stock Surges by 40%
Bitcoin (BTC) has been soaring, reaching as high as $68,287 today, approaching its all-time high of $69,000 set in November 2021. This has led to a surge in the stock prices of cryptocurrency-related companies, particularly MicroStrategy, which holds the most Bitcoin globally.
Despite the overall market decline on Monday, with all three major US indices closing in the red, MicroStrategy’s stock price defied the trend and surged by 23.59%, closing at $1,334.01, its highest closing price since March 2000. The stock has risen by over 94.7% year-to-date and has seen an astonishing 809% increase since the company began its long-term Bitcoin holding strategy in August 2020, pushing its market value above $22.33 billion.
Source:
Yahoo Finance
MicroStrategy’s Bitcoin Unrealized Gains Exceed $7.12 Billion
As the leading global publicly traded company in terms of Bitcoin holdings, MicroStrategy recently added 3,000 BTC in February, bringing its total holdings to 193,000 BTC, which is now worth over $13.211 billion. This means that the company’s Bitcoin unrealized gains have surged by approximately $7.121 billion. Since announcing the latest addition to its holdings on February 26, the unrealized gains have increased by over $2.3 billion in less than 8 days.
Further reading:
MicroStrategy Invests Another £150 Million to Add 3,000 Bitcoins! Holds 193,000 BTC with Nearly $4.8 Billion in Unrealized Gains
Source:
Bitcoin Treasuries
MicroStrategy to Raise $600 Million in Corporate Bonds for Bitcoin Acquisition
However, MicroStrategy is not satisfied with its current Bitcoin holdings. Michael Saylor, the biggest Bitcoin bull and CEO of MicroStrategy, announced today that the company intends to issue $600 million in convertible senior notes through private placements to qualified institutional investors. The funds raised will be used for “acquiring Bitcoin” and other general corporate purposes.
MicroStrategy also plans to grant the initial purchasers of the corporate bonds an option to purchase up to an additional $90 million aggregate principal amount of the notes within 13 days from the date of the initial issuance. The company stated that the completion of this issuance is subject to market and other conditions and cannot be guaranteed.
Note: “Convertible senior notes” refer to bonds that investors can purchase and receive interest income until maturity. After the agreed-upon period, investors can convert the notes into shares, cash, or a combination of both based on the terms of the bonds. “Senior” indicates that the investors have a higher priority in debt repayment compared to general bondholders.
Related articles:
Michael Saylor: Firmly Holding Bitcoin “Never Selling”! MicroStrategy’s BTC Holdings Show Unrealized Gains of Nearly $4 Billion
Michael Saylor: MicroStrategy to Transform into a “Bitcoin Development Company,” Current BTC Holdings Show Unrealized Gains of $3.5 Billion
MicroStrategy’s Q4 Bitcoin Purchase of 31,000 Coins Marks Its Largest Growth in Three Years, Holding 190,000 Bitcoins as the Biggest Winner