MicroStrategy Announces $1.75 Billion Note Offering to Buy Bitcoin
MicroStrategy founder Michael Saylor announced that the company will issue $1.75 billion in zero-coupon convertible notes to buy more Bitcoin. Earlier today, MicroStrategy purchased over $4.6 billion in BTC.
The post-Trump bull market has fueled MicroStrategy’s Bitcoin-first policy, with the company making a record investment in BTC.
MicroStrategy will buy more Bitcoin
According to the latest news announcementthe convertible senior notes will be issued as zero-coupon convertible bonds, meaning they will pay no interest. By 2029, the notes will mature into MicroStrategy stock and therefore sell at a discount.
“MicroStrategy intends to use the net proceeds from this offering to purchase additional Bitcoin and for general corporate purposes,” the company said in its press release. release.
The $1.75 billion fundraiser for further Bitcoin purchases was announced the same day MicroStrategy purchased $4.6 billion in BTC. A week before that, it also proposed Bitcoin purchases slightly over $2 billion.
This undoubtedly makes MicroStrategy The world’s largest Bitcoin holdercontinues its steadfast Bitcoin-first policy.
MicroStrategy’s stock price has risen sharply since adopting this policy, Outperformed Bitcoin in October, hitting 24-year high. Its shares are up more than 460% in a year, and are up nearly 75% this month alone.
company value and Bitcoin performancebut they are not always directly aligned. Regardless, MicroStrategy hit these highs before Trump was re-elected, and The ensuing bull market sent them soaring.
Some specific details of the private placement offering were not made clear in the press release; for example, the exact terms of the asset’s maturity and MicroStrategy’s right to redeem the notes for cash.
To this end, Thaler also Announce The offering was discussed in a webinar held on Tuesday, November 19th. It is open to qualified institutional buyers, the same group that can purchase notes.
As long as the bull market continues, there are no obvious limits to MicroStrategy’s Bitcoin appetite. However, Bitcoin’s supply is limited and ETF issuers has exceeded the production level of miners. These massive purchases can’t last forever, especially in a buyer’s market like this, but Thaler will likely be able to keep it going for as long as possible.
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