20 June 2026
MicroStrategy Has 129K Bitcoin But At a Debt Of $2.4B
Since August 2020, MicroStrategy (MSTR) has bought 129,000 Bitcoins to add the flagship Cryptocurrency to its balance sheet.
Michael Saylor, the co-founder of MicroStrategy, first bought the cryptocurrency by converting $250 million of its cash holdings into 21,454 BTC. The company has continued its process of buying the dip to triple its holdings over the past two years.
Based on the current price, the total BTC holding is worth over $3.8 billion, down from nearly $6 billion in December 2021 following a volatile few months for the market.
However, CNBC’s Kate Rooney states that purchases have also come at a $2.4 billion debt.
Rooney said, “MicroStrategy can be a tough company to size up. It’s both a software firm and essentially a Bitcoin holding company and both of these businesses impact the balance sheet and the bottom line.”
According to her, the BTC buys have come in the form of convertible notes, with investors getting company stock on maturity.
Around $1.7 billion of the debt is in the senior convertible notes, at an interest rate of between 0% and 0.75%. Additionally, the company has also taken on $500 million worth of debt in senior secured notes that offer a 6.1% interest rate. The recent debt is a “first-of-its-kind” $205 million bitcoin-backed loan taken in April at an interest rate of roughly 4%.
MicroStrategy also faced a potential margin call after the last purchase if the BTC price fell below $21,000. Although, Michael Saylor believes the company has “enough Bitcoin to put up as collateral” should it come to that.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice
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