American business intelligence and software development company, Microstrategy revealed new plans to acquire additional Bitcoin, further bolstering its already substantial BTC holdings.
MicroStrategy Mega Bitcoin Purchase in Progress
In a recent Press release Published on MicroStrategy’s official website, the software development company announced plans to raise $500 million in convertible debt offerings for buy more Bitcoin. Just a few days ago, the company had sold approximately $800 million in convertible debt offerings, using the sale proceeds to acquire around 12,000 BTC valued at around US$821.7 million at the time.
Frankly, MicroStrategy appears to be in a complete wave of Bitcoin acquisition, potentially attributed to cryptocurrency massive bullish rallies recently and its rise to new all-time highs. As of March 11, 2024, the business intelligence company has a total 205,000 BTCworth over $15 billion based on CoinMarketCap’s Bitcoin price of $73,411 at the time of writing.
With its latest purchase of 12,000 BTC, MicroStrategy has finally surpassed the Bitcoin Holdings of BlackRock’s Spot Bitcoin Exchange Traded Fund (ETF). Furthermore, the software development company secured first position as the leading public company with the largest Bitcoin holdings, surpassing the holdings of Tesla and Coinbase.
In March 2024, MicroStrategy’s market capitalization increased emerged to US$29.96 billion, reflecting an increase of 10.85% in the last 24 hours. The company is also currently ranked as the 642nd most valuable company in the world by market capitalization.
MicroStrategy Targets Convertible Senior Note Offerings
Since the beginning of the year, MicroStrategy has purchased almost 16,000 BTC. This time, the company chose to raise capital through convertible senior notes, marking a change from the previous year when most of its acquisition funds Bitcoin were generated from equity.
According to Market Watch reportO business intelligence company stock value has also increased recently, with MSTR prices witnessing a staggering 145% increase in a month.
As stated in its press release, the company intends to sell senior convertible notes to qualified institutional buyers. MicroStrategy revealed plans to grant early purchasers of the notes an option to purchase up to an additional $75 million in notes within 13 days of initial issuance.
The software development company disclosed that the notes will remain unsecured, with interest paid semiannually starting in September 2024. Additionally, Microstrategy will have the right to redeem the notes from March 2028 or holders will be able to request a repurchase from the company, with conversion deadlines determined by the offer prices.
Proceeds and surplus funds generated from the upcoming $500 million convertible senior note sale will be used to Expand MicroStrategy’s Bitcoin Holdings and for general corporate purposes.
BTC price falls to $72,700 | Source: BTCUSD on Tradingview.com
Featured image from The Guardian, chart from Tradingview.com
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