MicroStrategy Acquires Additional 7,420 Bitcoin with $1 Billion in Debt Offering
By: Eva Baxter
MicroStrategy, the firm led by Michael Saylor, recently filed with the US SEC to disclose its acquisition of 7,420 BTC for $458.2 million between September 13 and September 19. This transaction averages $61,750 per Bitcoin, funded through the proceeds from its latest senior notes offering.
The senior notes offering was initially set to raise $700 million but increased to $875 million due to high demand. This raise was further supplemented with $1.01 billion to facilitate the latest Bitcoin purchase. This acquisition contributes to MicroStrategy's ongoing strategy of leveraging debt to accumulate Bitcoin, as demonstrated in their recent purchase of approximately 18,300 BTC for over $1 billion. This recent acquisition has now brought MicroStrategy's total Bitcoin holdings to 252,220 BTC, acquired at an aggregate cost of $9.90 billion, with an average price of $39,266 per Bitcoin.
Market data from SaylorTracker indicates that the current market value of MicroStrategy's Bitcoin holdings is about $15.84 billion, indicating an unrealized profit of approximately $6 billion. Additionally, the firm recorded a quarterly Bitcoin yield of 5.1%, with a year-to-date yield of 17.8%. Following the announcement, MicroStrategy's stock (MSTR) experienced a modest uptick, rising 0.18% according to Yahoo Finance.
Growing Interest in MicroStrategy ETFs
MicroStrategy's continuous acquisition spree has coincided with a noticeable surge in interest in the company’s exchange-traded funds (ETFs). According to Bloomberg Intelligence ETF analyst Eric Balchunas, newly launched leveraged MicroStrategy ETFs are breaking records in terms of volatility and attracting significant investor attention.
Among these, the long MicroStrategy ETF recorded $2 million in trading volume on its first day alone and was set to reach $10 million by mid-day on September 19. Balchunas remarked that such volume early on is atypical for ETF launches, pointing out that only around 1-2% of ETF launches reach this kind of early trading volume. Greg King, founder of Osprey Funds, emphasized the appeal of these ETFs, noting that they provide “one of the most leveraged ways to play BTC” in today's market.
Additionally, Defiance ETFs also recently launched a 1.75x MicroStrategy ETF on August 15, which has since accumulated over $200 million in assets under management, further demonstrating the increasing investor interest.
