MicroStrategy To Purchase More Bitcoin (BTC) with $500M Capital Raise
Michael Saylor, the former CEO of MicroStrategy, has announced the firm’s intention to offer $500 million in convertible senior notes. The move is aimed at raising funds to acquire additional Bitcoin and support general corporate purposes.
Key points:
- MicroStrategy plans to offer $500 million in convertible senior notes to qualified institutional buyers.
- The company may grant initial purchasers an option to buy an additional $75 million in notes within 13 days of issuance.
- MicroStrategy may redeem the notes for cash on or after June 20, 2029, subject to certain conditions.
- The fund will be used to acquire more Bitcoin.
The announcement by the firm comes at a time when Bitcoin is trading in the range of $67,000. BTC surged to $69,000 after the US CPI data dropped. However, after the FOMC meeting, the crypto market reversed course.
Also check out: US Inflation Drops To 3.3%, Crypto Market Turns Bullish
MicroStrategy aims to raise more funds to ramp up Bitcoin holdings
By raising additional funds through this offering, MicroStrategy aims to further expand its Bitcoin holdings.
The move comes at a time when institutional interest in Bitcoin and other cryptocurrencies is at an all-time high. Major corporations, financial institutions, and investment firms have been increasingly allocating a portion of their treasury reserves to Bitcoin.
Despite the volatility risks, MicroStrategy keeps acquiring more Bitcoin. According to data from Saylor Tracker, the company currently holds 214,400 BTC. The current value of the holdings stands at $14.59 billion.Ā
MicroStrategy is currently enjoying an unrealized profit of $7 billion as per the current market price of BTC.
