MicroStrategy, the largest corporate holder of Bitcoin (BTC), is planning to raise $600 million in order to acquire more Bitcoin. The company confirmed this news in a statement on March 4, explaining that the funds will be issued as senior convertible notes.
Senior convertible notes are a type of debt security that can be converted into equity at a later date. They are considered “senior” to common stock, meaning that holders have priority in the event of bankruptcy or liquidation.
MicroStrategy stated that it intends to use the net proceeds from the sale of the notes to purchase more Bitcoin for general corporate purposes. Additionally, the company expects to grant the initial purchasers of the notes an option to buy up to an additional $90 million aggregate principal amount of the notes.
The notes will mature on March 15, 2030, unless they are repurchased, redeemed, or converted earlier in accordance with their terms. They can be converted into cash, shares of MicroStrategy’s class A common stock, or a combination of both.
This announcement comes as MicroStrategy’s stock rose over 2% to $1,359 on March 4. Meanwhile, Bitcoin experienced an 8.1% increase over the past 24 hours, reaching $67,480. It is rapidly approaching its all-time high of $69,000, which was achieved on November 10, 2021, according to CoinGecko.
MicroStrategy’s share price has seen a significant rise of 172% over the past month. The company’s founder and executive chairman, Michael Saylor, has been the driving force behind MicroStrategy’s Bitcoin investment strategy. The firm currently holds 193,000 BTC, valued at $13 billion based on current prices.
With an average purchase price of $31,550, MicroStrategy has profited nearly $7 billion from its Bitcoin investment. This showcases the success of the company’s strategy in the volatile cryptocurrency market.
This story is still developing, and more information will be provided as it becomes available.