MicroStrategy to Buy Bitcoin with $3 Billion Notes Offering

MicroStrategy to Buy Bitcoin with $3 Billion Notes Offering MicroStrategy to Buy Bitcoin with $3 Billion Notes Offering

MicroStrategy is set to become a leader in Bitcoin acquisition, announcing plans to use proceeds from its recent $3 billion convertible senior notes offering to acquire more Bitcoins. 

According to the press release, the notes, which are due in 2029, were successfully sold to qualified institutional buyers in a private offering. Net proceeds from the sale totaled approximately $2.97 billion after accounting for discounts, commissions, and offering expenses. Emphasizing on its Bitcoin Reserve Strategy, MicroStrategy said, “MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes.”

Since the company’s initial $250 million investment, MicroStrategy has amassed 331,200 Bitcoin, worth over $30 billion. This latest investment plan aligns with its ongoing strategy of optimizing capital markets to increase its Bitcoin holding which is its primary reserve asset. MicroStrategy’s executive team views Bitcoin as a hedge against inflation and a store of value, reinforcing its position as one of the largest institutional holders of the cryptocurrency.

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CEO Michael Saylor has been at the forefront of promoting Bitcoin as a transformative asset. He even recommended the video firm Rumble add Bitcoin to its balance sheet. Recently, showing his unflinching trust in BTC, Saylor stated, ‘I am Bitcoin only, 100%,’ as he shared that he only trusts Bitcoin- and no other cryptocurrency.

As for Bitcoin, the crypto is inching closer to the $100K mark, after topping a new all-time high (ATH) of $99,199.81, this morning. It is currently quoted at $99,120, up 2.20% in the past 24 hours. As a result of this surge, Bitcoin related stock, the Bitcoin Industrial Complex, surpassed a trading volume of $70 billion today.

MicroStrategy $3 Billion Convertible Notes Offering 

The notes issued are unsecured, senior obligations that carry no regular interest and mature on December 1, 2029. They are convertible into cash, MicroStrategy’s class A common stock, or a combination of both, at the company’s discretion. The initial conversion price is set at $672.40 per share, representing a 55% premium over the November 19, 2024, average trading price of $433.80.

Also Read: MicroStrategy Stock Climbs 11%, Overtakes 2 Largest Gold Mining Stocks

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