MicroStrategy, the leading American business intelligence software company, is not stopping when it comes to buying bitcoin (BTC), and has proposed a new offering of $500 million of convertible notes “to acquire additional bitcoin.”
MicroStrategy bitcoin acquisitions show no sign of slowing down, as the funds raised now will be used to add more to the its already heavy bag. The “Bitcoin development” firm confirmed in an announcement on March 13 that the offering will come in the form of a “private offering to persons reasonably believed to be qualified institutional buyers.”
MicroStrategy Bitcoin Bet: Doubling Down
MicroStrategy is the largest corporate holder of bitcoin, having amassed close to 1% of bitcoin’s total supply. The company recently completed an $800 million convertible note offering, acquiring a whopping 12,000 BTC at $68,477 per coin.
The announcement reads:
“MicroStrategy also expects to grant to the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $75 million aggregate principal amount of the notes. The offering is subject to market and other conditions, and there can be no assurance as to whether, when or on what terms the offering may be completed.”
MicroStrategy Holds 205,000 BTC Worth $15 billion
It is important to note that MicroStrategy currently holds 205,000 BTC which is worth a whopping $15 billion ,up from $8.1 billion. The firm has experienced a return of 117% on its investment.
“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, 2031, unless earlier repurchased, redeemed or converted in accordance with their terms,” noted the announcement.
Further, MicroStrategy is just 5,000 bitcoin away from holding at least 1% of the total supply of the leading digital asset.
MSTR Stock Continues to Rally
According to the data from Google Finance, the stock of MicroStrategy continues to rally, increasing 10.85% to $1,766 as of March 13. On March 14, 2023, the price of the MSTR stock was $227.55 while as of March 13, 2024, the price stood at $1,766.
According to Michael Saylor, the executive chairman of MicroStrategy, the next phase for the company’s strategy will be a pivot towards Bitcoin development. The company will leverage their expertise in business intelligence software to position itself as a global leader in the Bitcoin space.
Saylor also recently said that he will continue “buying the top forever.” “Bitcoin is the exit strategy,” he said while adding:
“Bitcoin is technically superior to those asset classes. And that being the case, there’s just no reason to sell the winner to buy the losers.”
When it comes to the approval of spot Bitcoin Exchange-Traded Fund (ETF) in the United States, Saylor highlighted it to be the biggest Wall Street development in the past 30 years.
