MicroStrategy announces its intention to increase Bitcoin holdings through $600M convertible notes offering, continuing its pattern of acquiring digital assets.
Michael Saylor’s investment firm, MicroStrategy, has announced its intentions to bolster its Bitcoin reserves in light of the recent surge in the digital asset’s value.
MicroStrategy plans to raise $600 million for this purpose, aiming to add to its existing stash of 193,000 Bitcoins, which is currently valued at around $13.19 billion.
MicroStrategy's Funding Strategy
MicroStrategy has unveiled its strategy to fund the acquisition of additional Bitcoin through convertible senior notes.
Convertible senior notes represent a form of debt security that can be converted into equity at a later stage.
The $600 million worth of notes will be offered to qualified institutional buyers under US securities laws.
These notes will constitute unsecured senior obligations of MicroStrategy and will carry semi-annual interest payments starting from September 15, 2024.
MicroStrategy has been consistently increasing its Bitcoin holdings in recent times.
Continuous Bitcoin Acquisition by MicroStrategy
On February 7, MicroStrategy reportedly acquired an additional 850 Bitcoins for $37.2 million.
The company took advantage of market fluctuations, managing to secure a purchase price lower than the current value of Bitcoin.
This is in line with Saylor’s unwavering commitment to Bitcoin, irrespective of market conditions, be it bullish or bearish.
In June 2023, Saylor boldly predicted that Bitcoin, valued at approximately $25,900 at the time, would see a tenfold increase in the future.
According to this projection, Bitcoin could potentially reach a price point of around $250,900.
Given MicroStrategy's prominence in the Bitcoin industry, investors closely monitor its actions as part of their market analysis.