Bitcoin Drops Below $65,000 as MicroStrategy Ramps Up Accumulation

Bitcoin has fallen below $65,000, a significant support level that had held for several weeks. The growing influence of Bitcoin, the world’s largest cryptocurrency, has led many financial institutions to embrace it, driven by optimism about participating in this burgeoning industry. A notable player in this space is MicroStrategy, a company that has been at the forefront of aggressively accumulating Bitcoin over the years. Continuing its series of acquisitions, the company has made another substantial purchase.

MicroStrategy’s Increasing Bitcoin Holdings

In its ongoing effort to bolster its Bitcoin holdings, MicroStrategy’s Chairman Michael Saylor announced on Thursday, June 20, 2024, the acquisition of 11,931 Bitcoin. Valued at approximately $786 million at the time of purchase, this new BTC acquisition adds to the company’s already substantial reserve of 214,400 Bitcoin, bringing the total to 226,331. Acquired at an average price of around $65,914 per Bitcoin, this purchase follows a recent acquisition of 9,245 Bitcoin between March 11 and March 18, positioning MicroStrategy’s total holdings at over 1% of the entire BTC supply.

This acquisition aligns with the company’s recent statements about its intention to further strengthen its position in the cryptocurrency market.

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

MicroStrategy: Issuing Convertible Bonds to Acquire More BTC

In a statement on June 13, 2024, the Bitcoin-supporting company announced its intention to offer $500 million in senior convertible bonds as part of its fundraising efforts to purchase additional assets. The bonds, maturing in 2032, will be offered privately to institutional investors who meet specific criteria, including those classified as ‘qualified institutional buyers’ under Rule 144A of the Securities Act of 1933, subject to market and other conditions.

“These bonds will be unsecured, senior obligations of MicroStrategy, bearing interest payable semiannually on June 15 and December 15 each year, starting December 15, 2024. The bonds will mature on June 15, 2032, unless earlier repurchased, redeemed, or converted according to their terms,” the company stated.

MicroStrategy emphasized that the proceeds from the bond sale will strengthen its Bitcoin treasury through additional BTC purchases, as well as fund general corporate purposes.

Why This Matters

MicroStrategy’s latest Bitcoin acquisition has significantly bolstered its holdings, reinforcing its position as a major stakeholder in the industry.