Coming Bitcoin Boom? MicroStrategy Planning $700 Million BTC Purchase
Leading American business intelligence and analytics firm MicroStrategy aims to acquire Bitcoin again. AI-powered startup raised the first $500 million convertible note offering to $700 million to buy Bitcoin. Due to demand and price instability, this huge Bitcoin acquisition might raise its price.
After selling $700 million in convertible notes, MicroStrategy aims to acquire additional Bitcoin and extend its holdings, according to a recent press release. The corporation priced $700 million senior notes with a 2.25% interest rate and 2032 maturity.
Also read: What to Expect from Xai Vanguard: Genesis
MicroStrategy will sell convertible senior notes privately to eligible institutional investors under Rule 144A of the revised Securities Act of 1933. The business analytics provider also aims to let first convertible senior note buyers to acquire up to $100 million more notes within 13 days of issue.
In its press announcement, MicroStrategy said that it will buy additional Bitcoin for business purposes using convertible senior note proceeds. After commissions, the company's projected selling expenditures, and the first purchaser's discounts, the $700 million debt notes' net proceeds will be $687.8 million.
In its first quarter 2024 financial results, MicroStrategy reported $214,400 in Bitcoin holdings at $7.54 billion at an average purchase price of $35,180 per BTC. CoinGecko reports that MicroStrategy is the world's biggest Bitcoin holder among public firms, with a market valuation of $26.53 billion as of June 14, 2024.
Despite substantial losses in recent years, the corporation has no intentions to stop buying Bitcoin. MicroStrategy currently owns 1% of all Bitcoin due to its dedication to growing its holdings.
Strong Bitcoin accumulation might trigger new highs
Bitcoin's price is falling due to miners selling more than 1,200 BTC worth $79.20 million.
#bitcoin #BTC #MicroStrategу $BTC
