MicroStrategy business intelligence giant, founded and run by Michael Saylor, has announced yet another debt offering to raise funds by selling MSTR to investors. The goal is to raise a whopping $500 million.
Knowing the company’s strategy focused on Bitcoin, the community expects this half a billion U.S. dollars to be spent on another massive BTC chunk soon. The press release confirms these expectations by stating outright that the proceeds from the sale of these notes will be used for buying additional Bitcoin.
MicroStrategy Announces Proposed Private Offering of $500 Million of Convertible Senior Notes $MSTR https://t.co/5K8TqAi1D7
— Michael Saylor⚡️ (@saylor) June 13, 2024
Another MicroStrategy Bitcoin bet
The X post announcing the new fundraising round through selling convertible senior notes was published by Michael Saylor today.
The press release stated that the company intends to offer $500 million convertible senior notes, due in 2032, in a private offering to institutional buyers under the Securities Act of 1933.
The offering expects purchasers to decide to buy these notes within two weeks, which will include the date on which these notes are first issued. Interest on those obligations will be paid on June 15 and December 15 each year. According to the press release, MicroStrategy may redeem all or any portion of these senior notes for cash.
The document also confirms that the raised $500 million will be used for purchasing more Bitcoin and also for general corporate purposes. As of May 1, the company already owns 214,400 BTC evaluated at $7.538 billion.
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Another public company follows suit
In March this year, MicroStrategy already made a similar security offering to raise $525 million to buy additional Bitcoin with.
As reported by U.Today, earlier this week, news was spread about another public company beginning to stack Sats – a common expression within the crypto community meaning to buy and hodl BTC. Sat, from the Bitcoin creator's name Satoshi, represents 0.00000001 Bitcoin.
This company is DeFi Technologies. Following the example of MicroStrategy, it has made its first Bitcoin purchase, adding 110 BTC to its Bitcoin Treasury. This amount of the world’s flagship cryptocurrency is valued at an impressive $7.7 million.
At the time of this writing, Bitcoin is changing hands at $67,811 after a nearly 3% decline in the past 24 hours.
