MicroStrategy Inc. (NASDAQ: MSTR) has confirmed its strategic move in the cryptocurrency market, announcing the acquisition of an additional 9,245 Bitcoins following the successful completion of an oversubscribed convertible senior notes offering. The company revealed that it raised a substantial $603.75 million from the offering of convertible senior notes due 2031.
In line with its commitment to Bitcoin as a long-term investment, MicroStrategy wasted no time in converting the raised capital into Bitcoins. The acquisition, valued at approximately $623 million, further solidifies MicroStrategy’s position in the digital currency market. Currently, the company holds a staggering 214,246 Bitcoins, surpassing a total value of $13.5 billion based on the current Bitcoin price hovering around $63,000.
For perspective, BlackRock, a major player in the financial market, holds about 237,339 Bitcoins through its iShares Bitcoin Trust (IBIT), with a market value of approximately $15.94 billion.
Initially targeting a funding range between $515 million and $592.3 million, MicroStrategy surpassed expectations by raising $603.75 million, inclusive of an additional $78.75 million from the convertible senior notes. Executive chairman Michael Saylor emphasized MicroStrategy’s proactive approach, leveraging excess cash to acquire Bitcoins at an average price of $67,382 per coin.
Amidst these developments, the Bitcoin market continues to witness turbulence, with over $664 million liquidated from the crypto leverage market within the last 24 hours alone. The price of Bitcoin plunged by more than 7 percent in the past day, settling around $63,500 during the early New York session on Tuesday.
The recent decline follows a breach below the crucial support level at $69,000 earlier in the week, prompting a shift towards bearish sentiment among cryptocurrency traders. Despite calls to ‘buy the dip,’ traders are exercising caution, particularly amidst anticipation of high-impact news from the United States regarding interest rates scheduled for Wednesday.
In response to increased volatility, many cryptocurrency traders are seeking refuge in the stablecoins market, aiming to shield themselves from market fluctuations as they await crucial developments that could further influence the cryptocurrency landscape.
MicroStrategy’s latest move underscores the growing influence of institutional players in the cryptocurrency sphere, as traditional financial entities.
