MicroStrategy Shrugs Off Winter with a Bold BTC Bet
In a thrilling twist of fate, MicroStrategy, a leader in business intelligence and a known Bitcoin (BTC) aficionado, is back in the buying game. After a frost-bitten market period, the company has decided to scoop up more BTC, much to the delight of its investors. The recent buzz in the cryptocurrency realm echoes with promises of recovery, and MicroStrategy is riding that wave!
Loan Paid Off, Bitcoin Bought
Mark your calendars, folks! On March 27, Michael Saylor, co-founder and former CEO of MicroStrategy, broke the news on his passion for 280 characters—a.k.a. Twitter. He gleefully shared that the firm has settled its $205 million loan to Silvergate Bank at a delightful 22% discount, because who doesn’t love a bargain? Saylor revealed that in addition to saying ‘goodbye’ to the loan, MicroStrategy snapped up 6,455 BTC for a cool $150 million, averaging $23,238 each. Not too shabby, right?
The Bitcoin Inventory Grows
Wanna do the math? With this latest haul, MicroStrategy’s Bitcoin stash ballooned to a staggering 138,955 BTC. The company’s total investment sits around $4.1 billion, which translates to an average price of $29,817 per Bitcoin. Talk about commitment to the cause! It seems like MicroStrategy isn’t the type to just dip a toe in the crypto pool; they’re doing cannonballs instead!
From Borrowing to Investing: A Quick Recap
- In March 2022, MicroStrategy took on a $205 million term loan from Silvergate Bank for their Bitcoin adventures.
- Fast forward to March 2023: they settled that loan, freeing their collateralized Bitcoins from the leash that Silvergate had on them.
- Subscribers of the loan were required to keep their loan-to-collateral ratio below 50%, which sounds about as relaxing as running a marathon while balancing on a tightrope.
MicroStrategy’s Next Moves
What’s next on the agenda? Besides acquiring more BTC, the company hinted at a $500 million sales agreement with Cowen and Company and BTIG for Class A common stock. In a jubilant turn of events, MicroStrategy wrapped up the issuance of 1,348,855 shares to cash in around $339 million. That’s more than enough to grab even more digital coins on the market!
Time for Reflection
The latest Bitcoin purchase marks MicroStrategy’s triumphant return to the acquisition game this year. Previous acquisitions included a little shopping spree in late December 2022, where they scooped up 2,395 BTC at an average price of $17,181. As it stands, the excitement and commitment to Bitcoin is unmatched!
As news circles continue to swirl in the crypto realm, MicroStrategy remains under the watchful eye of investors, and perhaps a few curious cats. Stay tuned for more updates, because this story is far from over!
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