David Edwards
Blockchain intelligence firm Arkham has reported that MicroStrategy has moved 4,922.697 BTC into three newly created, unmarked addresses. This significant transaction occurred both before and after the Federal Reserve’s announcement of a 50 basis point rate cut, which sparked a notable reaction in the cryptocurrency market.
Following the Fed’s decision, Bitcoin’s price rose by 3%, with the broader cryptocurrency market capitalization increasing by 3%, reaching $2.14 trillion.
Details of MicroStrategy’s BTC Transfer
MicroStrategy’s Bitcoin transfer was executed in four distinct transactions, distributing 360.251 BTC, 2,026 BTC, 395.446 BTC, and 2,141 BTC across the new addresses. This movement comes shortly after the company’s announcement of a private offering of convertible senior notes valued at $875 million. These notes, offering an annual rate of 0.625%, are available exclusively to qualified institutional investors under the Securities Act of 1933.
MicroStrategy also revealed that the offering was increased from its originally planned $700 million aggregate principal. Proceeds from the offering are intended to fund further Bitcoin acquisitions.
MicroStrategy’s Bitcoin Holdings Surpass 244,800 BTC
Despite Bitcoin’s price volatility, MicroStrategy continues to accumulate the cryptocurrency as a core treasury asset. On September 13, 2024, the company reported its latest Bitcoin purchase of 18,300 BTC, valued at $1.11 billion. This acquisition has delivered a Bitcoin yield of 4.4% quarter-to-date and 17.0% year-to-date.
As of September 12, 2024, MicroStrategy’s total Bitcoin holdings stand at 244,800 BTC, acquired at an aggregate cost of $9.45 billion, with an average purchase price of $38,585 per Bitcoin. According to Saylor Tracker, this latest acquisition has generated an unrealized gain of $25.2 million.
In total, the company’s BTC reserves now reflect an unrealized gain of 60.3%, equating to approximately $5.72 billion in value. Currently, Bitcoin is trading above $62,200, after recovering from a 24-hour low of $59,218. Data from CoinMarketCap reveals a 7% increase in Bitcoin’s price over the past week.
