Microstrategy Plans to Purchase Additional Bitcoin Using $600M from Convertible Note Offering

Microstrategy CEO on Rumor of Company Selling Bitcoin

Microstrategy Announces $600 Million Convertible Note Offering to Fund Additional Bitcoin Purchases

Bollywoodfever, March 5: Microstrategy Inc. (Nasdaq: MSTR), a company listed on the Nasdaq, has unveiled plans to issue $600 million in convertible senior notes, aiming to allocate a portion of the proceeds towards further bitcoin acquisitions. 

Currently, Microstrategy’s bitcoin portfolio encompasses 193,000 BTC. 

Michael Saylor, the company’s executive chairman and a staunch bitcoin advocate, has described bitcoin as the globe’s “most favored investment asset.

Microstrategy CEO on Rumor of Company Selling Bitcoin

The initiative to augment its bitcoin holdings was disclosed on Monday, with the company detailing its strategy to issue convertible senior notes. 

These notes, set to mature on March 15, 2030, will be unsecured and rank senior, featuring semi-annual interest payments starting from September 15, 2024.

Microstrategy’s objective with the net proceeds is twofold: to expand its bitcoin reserves and to cover general corporate expenditures. 

The specifics regarding the interest rate, conversion rate, and other pertinent terms of the notes will be finalized upon the offering’s pricing. 

The sale targets qualified institutional buyers, adhering to Rule 144A under the Securities Act.

This move mirrors Microstrategy’s previous endeavors to bolster its bitcoin inventory through convertible senior notes sales, a strategy first employed in early 2021 with a similar $600 million offering.

Positioning itself as the pioneer Bitcoin development firm, Microstrategy recently reported its bitcoin holdings had reached 193,000 BTC. 

Michael Saylor, reflecting on the cryptocurrency’s status, highlighted bitcoin’s unparalleled asset class and its attractiveness to investors, predicting a sustained influx of capital into bitcoin. He underscored bitcoin’s ascension as the premier investment choice worldwide.

Also Read, Asian Investors Propel Bitcoin’s Surge, Dominating Global Trading Volumes

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