MicroStrategy yesterday announced the issuance of US$875 million worth of convertible senior bonds and announced that these funds will continue to be used to purchase Bitcoin, in addition to being used to redeem the US$500 million previously issued convertible bonds. (Previous summary: MicroStrategy plans to spend another $2 billion to buy more BTC, VanEck: Bitcoin’s market value will reach half of gold) (Background supplement: McDonald’s French fries to Bitcoin tycoon” Michael Slayer MicroStrategy’s way of getting rich by investing in BTC Road) Michael Saylor, the founder of MicroStrategy, a U.S.-listed company that dominates Bitcoin, announced on Monday plans to sell convertible senior bonds worth up to $700 million. This is the company’s third issuance of corporate bonds in 2024. In the official announcement yesterday (18th), MicroStrategy increased the total amount to US$875 million. It is understood that the convertible bonds will mature in 2028, with an interest rate of 0.625%, and are intended for institutional investors. MicroStrategy added a position to Bitcoin MicroStrategy explained in the announcement that the convertible senior bonds issued this time will meet the following basic conditions: They are unsecured senior bonds, and interest will be paid semiannually starting from March 15, 2025; On or after December 20, 2027, MicroStrategy can redeem all or any share of the bonds for cash; before March 15, 2028, the convertible bonds can only be redeemed when specific events occur and within specific times. They can be converted at any time after the period; the initial conversion rate of these convertible bonds is 5.4589 MicroStrategy Class A shares for every US$1,000 of convertible bonds. MicroStrategy continued to point out that after deducting commissions and issuance fees from these convertible bonds, MicroStrategy could earn approximately US$864.1 million in income. More importantly, in addition to the fact that these funds will be used to redeem the US$500 million convertible bonds previously issued by MicroStrategy that will also mature in 2028, the remaining funds will also be used to continue to increase positions in Bitcoin: MicroStrategy plans to Use the net proceeds from the offering to redeem MicroStrategy's $500 million convertible senior notes due 2028 and use any balance of the net proceeds to purchase additional Bitcoin and for general corporate purposes. MicroStrategy’s stock price rose slightly. Just after MicroStrategy announced the bond issuance, Bitcoin also exceeded $62,000 this morning.Benefiting from this, MicroStrategy's share price rose again by 2.31% to $135.74 after the bell. MicroStrategy’s Bitcoin holdings reached $14.6 billion. Although Bitcoin has been sluggish in recent months, MicroStrategy continues to add positions. According to the latest statistics from bitcointreasuries, MicroStrategy’s current Bitcoin holdings have increased from 214,400 BTC in June this year to the current 244,800 BTC, with a total capital cost of US$9.45 billion. The total value of the positions is currently as high as US$15.1 billion. Achieved profit of US$5.65 billion. MicroStrategy’s Bitcoin Position Although a large portion of the convertible bonds will be used for repayment after the successful fundraising this time, MicroStrategy still stated that it will continue to increase its position in Bitcoin, and the day when the position exceeds 250,000 BTC may come soon. Related reports: Legendary investor Soros holds over US$257 million in "micro-strategy convertible bonds", embracing Bitcoin in disguise. Michael Saylor: The approval of the Ethereum spot ETF will be more beneficial to Bitcoin. Will micro-strategy buy ETH? MicroStrategy adds another 12,000 Bitcoins! Can I make money by buying with Microstrategy? 〈MicroStrategy issued another US$875 million convertible bond "continue to buy Bitcoin", with a total holding of nearly 245,000 BTCs〉 This article was first published in DongZu BlockTempo "DongZu DongTen - the most influential blockchain News Media".

#BTC