As a seasoned financial analyst with a keen interest in cryptocurrencies, I find MicroStrategy’s move to raise over $1 billion to buy more Bitcoin intriguing. This isn’t just another corporate investment; it’s a bold bet on the future of digital currency.
MicroStrategy finished selling a $1.01 billion worth of convertible senior notes maturing in 2028, just days following its announcement about the offering.
On September 20th, MicroStrategy – one of the biggest Bitcoin (BTC) owners among corporations – revealed through a press statement that they have successfully concluded a $1.01 billion bond offering with a 0.625% interest rate, which matures in 2028. This move comes barely a week after they announced their intention to sell such bonds.
The notes were transferred to institutional investors according to Rule 144A of the Securities Act. The primary goal was to use the earnings from this sale for two main purposes: purchasing more Bitcoin and fulfilling other corporate needs.
Based in Virginia, the company announced issuing notes that were valued 40% higher than their common stock price, initially setting the conversion cost at around $183.19 per share. MicroStrategy utilized an option to issue an extra $135 million worth of notes, raising the total amount to a billion dollars.
MicroStrategy raises over $1b to buy more Bitcoin
The money raised will go towards repaying our $500 million 6.125% senior secured notes maturing in 2028, which were initially guaranteed by approximately 69,080 Bitcoin. Any leftover funds will be invested in more cryptocurrency and used for other corporate needs.
At MicroStrategy’s option, the notes can be redeemed for either cash, stocks, or a mix of both.
Michael Saylor’s company, MicroStrategy, remains steadfast in its Bitcoin investment approach, even amid market fluctuations. This firm is among the biggest institutional owners of Bitcoin, with approximately 244,800 BTC worth more than $15.4 billion as of September. This latest move follows MicroStrategy’s recent acquisition of 18,300 BTC for a staggering $1.11 billion, demonstrating its dedication to growing its cryptocurrency portfolio.
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2024-09-20 15:56