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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Mar 19, 2024 13:46 UTC
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MicroStrategy Raises $604 Million to Buy Additional 9,245 Bitcoins
MicroStrategy raised $603.75 million and used it to buy more Bitcoin, increasing their holdings to 214,246 coins.
This purchase makes MicroStrategy the second-largest holder of Bitcoin behind BlackRock's iShares Bitcoin Trust.
Bitcoin price is volatile and has dropped recently, but MicroStrategy sees it as a long-term investment.
MicroStrategy Inc. (NASDAQ: MSTR) has achieved a significant milestone, raising an impressive $603.75 million through its recent offering of convertible senior notes due 2031. Without hesitation, the company swiftly converted these funds into Bitcoin, solidifying its long-term investment strategy.
Additionally, MicroStrategy disclosed its acquisition of 9,245 Bitcoins for around $623 million, boosting its Bitcoin holdings to a remarkable 214,246 Bitcoins, currently valued at over $13.5 billion based on Bitcoin’s current price of approximately $63,000.
MicroStrategy vs. BlackRock
To provide context, BlackRock, through its iShares Bitcoin Trust (IBIT), holds approximately 237,339 Bitcoins, valued at about $15.94 billion. This highlights the intensifying competition between MicroStrategy and BlackRock in the Bitcoin investment landscape.
MicroStrategy Exceeds Expectations
Based on the market demand, MicroStrategy previously anticipated to raise between $515 million and $592.3 million. However, MicroStrategy raised about $603.75, after the additional $78.75 million convertible senior notes.
According to executive chairman Michael Saylor, MicroStrategy topped the funds raised with its excess cash to acquire Bitcoins at an average price of $67,382 per coin.
Bitcoin Market Dynamics
Recent fluctuations in Bitcoin prices have led to increased market volatility, resulting in over $664 million liquidated from the crypto leverage market within a 24-hour period. Bitcoin’s value dropped by over 7 percent in the past day, reaching around $63,500 during the early New York session on Tuesday. The breach of the crucial support level at $69,000 earlier in the week has prompted a shift in sentiment among cryptocurrency traders, with many adopting a bearish outlook for the short term.
Despite calls to “buy the dip,” traders are seeking refuge in the stablecoins market amidst anticipation of high-impact news from the United States regarding interest rates on Wednesday.
As uncertainty looms, market participants are preparing for potential market turbulence and adjusting their strategies accordingly.
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