Michael Saylor’s MicroStrategy bought an additional 9,245 Bitcoins throughout this week for $623 million.
MicroStrategy’s latest purchase of Bitcoin brings their total holdings to 214,246 BTC, with an average purchase price of $35,160 per Bitcoin, totaling $7.5 billion in cumulative spending. This significant investment positions MicroStrategy’s Bitcoin assets at over 1% of the entire Bitcoin market, translating to an unrealized profit margin of approximately $6 billion.
To finance this substantial acquisition, MicroStrategy utilized two sources: $592.3 million was obtained through the company’s latest convertible debt offering, while the remaining $30.7 million was allocated from surplus cash reserves.
MicroStrategy has acquired an additional 9,245 BTC for ~$623.0M using proceeds from convertible notes & excess cash for ~$67,382 per #bitcoin. As of 3/18/24, $MSTR hodls 214,246 $BTC acquired for ~$7.53B at average price of $35,160 per bitcoin. https://t.co/oeYJGgiuy0
— Michael Saylor⚡️ (@saylor) March 19, 2024
Following the announcement of MicroStrategy’s strategic move and the completion of a $603.7 million convertible debt offering, the company’s stock value experienced a 13% decline on Tuesday. This decline coincided with a decrease in Bitcoin’s value. Notably, this debt offering closely followed another one of $800 million completed just the week prior.
MicroStrategy outlined its plan to repay the borrowed funds uniquely before September 15, 2030. The company intends to allow investors to exchange the cash they lent for MicroStrategy shares, subject to specific rules about timing and conditions.
Under these terms, for every $1,000 lent to MicroStrategy, investors receive 0.43 of a MicroStrategy share. This implies that if an organization lent $1,000 to the company, the lender could opt to receive shares worth approximately $2,327.21 instead of cash under certain conditions.
Starknet fixes STRK token airdrop issues for Immutable X and ETH pool stakers
The Ethereum layer-2 blockchain Starknet is set to include eligible Immutable X users and pooled Ether (ETH) stakers in its upcoming airdrop round scheduled for next month, marking another adjustment to its token unlock schedule.
The Starknet Foundation, which supports the Starknet network, has faced criticism over technical issues encountered by some pre-Merge ETH stakers and Immutable X users who were eligible for February’s Starknet (STRK) airdrop.
According to a statement shared with Cointelegraph, the foundation has resolved these issues, and eligible users will be able to claim their STRK tokens starting in April.
Starknet attributed the problems to inaccuracies in a list provided by Immutable, which erroneously classified many Immutable X users as VeVe platform users. This list was intended to distinguish between the two groups, as VeVe holds its users’ private keys, and airdrop-eligible VeVe users would not have had the necessary information for the claims process. Consequently, Starknet airdropped the tokens through the NFT platform.
With the list now corrected, Immutable X users who conducted eight or more transactions before June 1, 2022, will be able to claim their airdrop.
Starknet is still in discussions with the VeVe team regarding airdrops for VeVe users.
Also read: CRYPTO MARKET REVIEW IN 2023 AND NARRATIVES IN 2024
There were also challenges for pooled ETH stakers, as the staking protocols faced difficulties in airdropping STRK to eligible participants. Starknet identified several factors contributing to this issue.
Some staking protocols provided Starknet with a list of users eligible to claim their airdrop, which is set to begin in April.
The revised airdrop schedule represents another adjustment by Starknet, following concerns raised in February about the original unlock plan allowing investors to sell their holdings on retail users. Under the updated schedule, early contributors and investors will receive smaller and spaced-out STRK distributions over three years, instead of a larger drop scheduled for April.
The STRK airdrop process drew criticism from Starknet users who claimed they were ineligible despite engaging in significant transactions. Some missed out due to eligibility criteria requiring participants to hold at least 0.005 ETH (valued at about $10) at the time of a snapshot on Nov. 15, 2023.
Following the STRK airdrop on Feb. 20, large holders sold off tokens worth millions, causing the price to plummet by 60% from its peak of $4.40 to $1.90 in just over two days. Since then, STRK’s price has struggled to recover and is currently trading at $1.88, according to CoinGecko data.
