MicroStrategy Announces Plans to Purchase More Bitcoin
American software development and business intelligence company, MicroStrategy, has revealed its intention to acquire additional Bitcoin through a new round of convertible debt offerings. The company recently sold approximately $800 million in convertible debt offerings and used the proceeds to purchase about 12,000 BTC. With this latest move, MicroStrategy continues its aggressive acquisition of Bitcoin, likely influenced by the cryptocurrency’s recent bullish rallies and surge to new all-time highs.
MicroStrategy’s Growing Bitcoin Holdings
As of March 11, 2024, MicroStrategy holds a total of 205,000 BTC, valued at over $15 billion. This puts the company ahead of BlackRock’s Spot Bitcoin Exchange Traded Fund (ETF) in terms of Bitcoin holdings. Additionally, MicroStrategy now holds the top position among public companies with the largest Bitcoin holdings, surpassing Tesla and Coinbase.
MicroStrategy’s Market Capitalization and Ranking
MicroStrategy’s market capitalization has reached $29.96 billion as of March 2024, reflecting a 10.85% increase in the last 24 hours. The company is currently ranked as the world’s 642nd most valuable company by market capitalization.
New Approach: Convertible Senior Notes Offerings
In contrast to previous years when MicroStrategy relied on equity for Bitcoin purchases, the company has opted to raise capital through convertible senior notes this time. The decision comes after the purchase of nearly 16,000 BTC since the beginning of the year.
Convertible Senior Notes Details:
- The company plans to sell convertible senior notes to qualified institutional buyers.
- Early purchasers will have the option to buy up to an additional $75 million worth of notes within 13 days after the initial issuance.
- The notes will remain unsecured and interests will be payable semi-annually starting in September 2024.
- MicroStrategy will have the right to redeem the notes from March 2028 or holders can request a repurchase, with conversion terms determined at the offering’s prices.
Use of Proceeds and Future Plans
The $500 million raised from the convertible senior notes sale, along with any excess funds, will be used to further expand MicroStrategy’s Bitcoin holdings and for general corporate purposes.
Hot Take: MicroStrategy Continues to Bet Big on Bitcoin
MicroStrategy’s relentless pursuit of Bitcoin showcases its unwavering confidence in the cryptocurrency. By increasing its holdings and surpassing other major players in the industry, MicroStrategy establishes itself as a dominant force in the Bitcoin market. The company’s strategic shift towards convertible senior notes offerings highlights its innovative approach to raising capital for Bitcoin acquisitions. With its continued focus on expanding its Bitcoin portfolio, MicroStrategy positions itself as a key player in the future of cryptocurrency.
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