Business intelligence firm MicroStrategy confirmed that it is now ready to add more Bitcoins to the company’s reserve fund.
MicroStrategy is a popular business intelligence firm in the US. The company is highly recognized in the crypto space due to its significant Bitcoin holdings. Currently, MicroStrategy holds a net 331,200 BTC on its reserve balance sheet.
On 22 Nov 2024, MicroStrategy’s former CEO, Michael Saylor, confirmed that his company raised a total of $3 billion through the offering of 0% convertible senior notes due in December 2029, with plans to use some or all of the proceeds to buy more Bitcoin.
$MSTR has completed a $3 billion offering of convertible notes at 0% coupon and 55% premium, with an implied strike price of ~$672. https://t.co/GzO0br0Xfh
— Michael Saylor⚡️ (@saylor) November 21, 2024
A 0% senior convertible note doesn’t pay regular interest to stockholders but is sold at a discount and matures at face value unless converted earlier. These notes take priority over common stock in the event of bankruptcy or liquidation. If MicroStrategy uses the full $3 billion, it could buy nearly 30,600 Bitcoin. This Bitcoin-bull company also plans to raise nearly $42 billion solely to buy Bitcoin.
With its total holding of 331,200 BTC, MicroStrategy remains the top Bitcoin holder among all public companies. The valuation of this large Bitcoin reserve is nearly $32.7 billion, based on the current Bitcoin trading price.
MicroStrategy ($MSTR) Price
The current trading price of $MSTR is $397, down 16.5% over the past 24 hours. The price drop occurred after Citron Research disclosed a short position on $MSTR, claiming the shares are “overheated” and their trading volume has detached from Bitcoin’s fundamentals.
#MicroStrategy stock price sudden correction pic.twitter.com/REAqUw8u2D
— Bitcoinik (@Bitcoinikdotcom) November 22, 2024
Bitcoin Price Action
The current trading price of Bitcoin is $98,021, up 3.5% over the last 24 hours.
The current trade price of #Bitcoin is $98k pic.twitter.com/1EtpBIIbGL
— Bitcoinik (@Bitcoinikdotcom) November 22, 2024
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