MicroStrategy Bought 12,000 Bitcoin Before BTC Surge to $72,000

Key Takeaways

• MicroStrategy’s Bitcoin purchase between February 26 and March 10, 2024, was around 1,2000K BTC.
• The company completed a private offering of convertible senior notes, pushing the Bitcoin price above $72,000.
• Bitcoin ETF trading volumes and assets under management continue to grow, positively affecting the largest.

MicroStrategy’s strategic accumulation of Bitcoin has positively impacted the crypto market confidence, profiting the company before the digital asset hit an all-time high. The company reportedly purchased 12,000 BTC between February 26, and March 10, 2024. It invested around $821.7 million in cash, according to a filing with the United States Securities and Exchange Commission (SEC).

The acquisition is possibly a key factor behind Bitcoin’s remarkable surge past the $72,000 mark.

MicroStrategy’s Financial Strategy

MicroStrategy, the largest public company in terms of Bitcoin holdings, recently announced the completion of a private offering of 0.625% convertible senior notes, due in 2030.Investors could turn their loans to the company into MicroStrategy’s stock at a later time.

As per the filing , the company managed to sell these bonds for a total of $800 million. MicroStrategy largely allocated the proceeds from this offering, totaling approximately $782 million, to fund the acquisition of 12,000 BTC.

The company’s decision to purchase BTC using the proceeds from the offering, coupled with an additional $40.6 million of excess cash, was executed at an average price of approximately $68,477 per Bitcoin.

This strategic acquisition increased MicroStrategy’s total Bitcoin holdings to about 205,000 BTC. It has spent about $6.91 billion to buy BTC over time, at an average cost of about $33,706 per Bitcoin. The crypto’s price experienced a significant uptick after the announcement, reflecting the impact of large-scale institutional investments.

Bitcoin Price After MicroStrategy Accumulation

Bitcoin’s price, influenced by MicroStrategy’s acquisition, briefly surpassed the $72,000 level on March 11 before stabilizing under it. Additionally, the overall market sentiment was further buoyed by Michael Saylor’s advocacy for Bitcoin as a superior investment compared to traditional assets like gold, equity, or real estate.

MicroStrategy’s founder said in an interview with CNBC that BTC is digital property.

Meanwhile, Bloomberg’s senior analyst Eric Balchunas also highlighted that within just the first two months of the year, the 10 ETFs have collectively surpassed $55 billion in assets, with trading volume reaching $110 billion.

Parth Chaturvedi, Investments Lead at CoinSwitch Ventures told CCN: “In just over two months of going live, Blackrock’s IBIT and Fidelity’s FBTC have already accumulated more than $12b and $7.5b in AUM. Even though most experts were predicting such flows for the entire year of 2024, the speed of accumulation and subsequent price rise were unexpected.”

While the price surge on the back of institutions is noteworthy, Chaturvedi noted that retail participation is still nowhere close to the mania seen in 2021.

BTC Riding on Bull Rally

MicroStrategy’s aggressive accumulation notes a bullish stance on its future trajectory. Meanwhile, the broader trend of institutional interest in cryptocurrencies is positive. Bitcoin price is currently a response to substantial investments by institutions while retail investors could continue to underline growing acceptance, with more upside expected.

About the Author

Shraddha Sharma

Shraddha has around five years of experience as a financial journalist, focusing largely on the Asian markets. Starting her career in Mumbai, India, as a news trainee and producer, she quickly found her niche in crypto. She is keen on learning how emerging technologies affect the broader markets and enjoys explaining complex financial ideas in a way that's easy to understand.

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