MicroStrategy, an American business intelligence and software development company, has recently made headlines with its ambitious plans to acquire even more Bitcoin. The company announced its intention to raise $500 million in convertible debt offerings to purchase additional BTC, following a previous sale of $800 million in convertible debt offerings. This move comes as no surprise, given MicroStrategy’s relentless pursuit of bolstering its Bitcoin holdings amidst the cryptocurrency’s surge to new all-time highs.
As of March 11, 2024, MicroStrategy boasts a total of 205,000 BTC, valued at over $15 billion based on CoinMarketCap’s Bitcoin price. With its most recent purchase of 12,000 BTC, MicroStrategy has now surpassed the Bitcoin holdings of BlackRock’s Spot Bitcoin Exchange Traded Fund (ETF) and emerged as the leading public company with the largest Bitcoin holdings, surpassing even Tesla and Coinbase. The company’s market capitalization has soared to $29.96 billion, reflecting an impressive 10.85% increase in the last 24 hours, solidifying its position as the world’s 642nd most valuable company by market capitalization.
Throughout the year, MicroStrategy has been on a buying spree, acquiring nearly 16,000 BTC since the start of the year. This time around, the company has opted to raise capital through convertible senior notes, signaling a shift from its previous reliance on equity for Bitcoin acquisitions. Market Watch reports that MicroStrategy’s stock value has also experienced a notable uptick, with MSTR prices seeing a remarkable 145% increase in just a month.
MicroStrategy has disclosed its plans to sell convertible senior notes to qualified institutional buyers, offering early purchasers the option to buy an additional $75 million worth of notes within 13 days of the initial issuance. The notes will remain unsecured, with interests payable semi-annually starting in September 2024. The company reserves the right to redeem the notes from March 2028, or holders can request a repurchase, with conversion terms determined at the offering’s prices. Proceeds from the $500 million convertible senior notes sale will be allocated towards expanding MicroStrategy’s Bitcoin holdings and for general corporate purposes.
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