Nasdaq-listed company Microstrategy is planning to sell $600 million in convertible senior notes and use some of the proceeds to buy additional bitcoin. Microstrategy now holds 193K bitcoin. The company’s executive chairman, the pro- bitcoin Michael Saylor, says bitcoin has become the world’s “most popular investment asset.”
Microstrategy to Buy More Bitcoin With Proceeds From $600M Convertible Note Sale
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Microstrategy to Buy More Bitcoin
Microstrategy Inc. (Nasdaq: MSTR) announced on Monday a plan to issue $600 million in convertible senior notes, with a portion of the proceeds to be used for bitcoin purchases.
“The notes will be unsecured, senior obligations of Microstrategy and will bear interest payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2024. The notes will mature on March 15, 2030, unless earlier repurchased, redeemed, or converted in accordance with their terms,” the company explained, adding:
Microstrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes.
The company clarified: “The interest rate, conversion rate, conversion price, and certain other terms of the notes will be determined at the time of pricing of the offering.” Moreover, “The notes will be offered and sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act.”
This is not the first time Microstrategy is selling convertible senior notes to buy bitcoin. In early 2021, the company announced a similar plan to raise $600 million this way to acquire more BTC.
Microstrategy considers itself the world’s first Bitcoin development company. Last week, the company disclosed that its bitcoin holdings have risen to 193,000 BTC. This month, Microstrategy’s executive chairman, Michael Saylor, called bitcoin a superior asset class and expressed his belief that capital will continue to flow into the cryptocurrency. He also stated that bitcoin has become the world’s “most popular investment asset.”
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