MicroStrategy, led by CEO Michael Saylor, announced that raise 500 million dollars through a private offering of convertible senior notes. The profits will fund additional purchases, fueling their corporate bitcoin accumulation strategy.
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BREAKING NEWS: MICROSTRATEGY TO RAISE $500 MILLION IN STOCK SALES TO BUY MORE twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin pic.twitter.com/ALsb7znGEZ
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1801203057012711747?ref_src=twsrc%5Etfw”>June 13, 2024
MicroStrategy is already the largest public company holding bitcoin, with more than 214,400 btc worth $15 billion on its balance sheet. As of 2020, under Saylor's leadership, it adopted bitcoin as its primary reserve asset.
Its average purchase price per bitcoin remains around $35,000. With bitcoin trading near $68,000, the company is still significantly in the green on its holdings.
The latest capital raise of $500 million comes through the sale of convertible senior notes to qualified institutional buyers. The notes will pay interest semiannually and will mature in 2032, unless converted or redeemed earlier.
According to the advertisement, MicroStrategy may use the funds for general corporate purposes, but acquiring bitcoin remains the priority. The company will also give initial buyers the option to purchase an additional $75 million in notes.
MicroStrategy's obsession with buying bitcoin has made it a Wall Street proxy for bitcoin itself. The company's shares often rise and fall with bitcoin's price movements, and investors bet on btc's upside.
With this latest injection of capital, MicroStrategy shows its belief that bitcoin will continue to appreciate in the long term. Saylor is willing to double down by acquiring more coins as long as prices remain relatively low.
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