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MicroStrategy Inc. (NASDAQ: MSTR), a well-known company that is heavily invested in Bitcoin (BTC), has made another bold move to strengthen its balance sheet. The $96 billion company announced that it has successfully raised $3 billion to purchase more Bitcoins.
Earlier this week, MicroStrategy announced the pricing of its private offering of $2.6 billion on 0 percent convertible senior notes due by 2029. Remarkably, MicroStrategy has already completed the announced offering, having raised $3 billion, which included $400 million in additional purchases.
The company is expected to finalize a Bitcoin purchase before the end of this week, thus making it the largest buyer in the past few days. Earlier this week, MicroStrategy purchased 51,780 BTCs, worth about $4.6 billion, thus currently holding 331,200 coins.
Impact of MicroStrategy’s Bitcoin Acquisitions
As Bitcoin price rallied to a new all-time high (ATH) of around $99k fueled by the institutional FOMO, MicroStrategy’s stock market rallied in tandem. According to the latest stock market data, MSTR stock has gained over 21 percent in the last five days to trade at about $408 on Friday, November 22.
The impressive performance by Microstrategy has inspired other major companies to follow in the same direction. For instance, MARA Holdings announced on Thursday the closing of $1 billion in convertible debt at 0 percent interest, which represents the largest ever by a Bitcoin miner.
With the imminent entry of nation-states into the Bitcoin industry, more institutional investors are expected to follow in the same direction. Furthermore, the US spot Bitcoin ETFs, led by BlackRock’s IBIT, have been a huge success within the first year of launch.
According to the latest market data, the US spot Bitcoin ETFs have net assets under management of about $103.3 billion.
