MicroStrategy increases the scale of convertible bond issuance
According to previous reports from Zombit, MicroStrategy announced on November 18 the issuance of convertible senior notes with a face value interest rate of 0%, totaling 1.75 billion US dollars through a private placement. However, the company further announced last night that it plans to increase the total amount of convertible senior notes to be issued from 1.75 billion US dollars to 2.6 billion US dollars, and stated that it will use the net proceeds from this issuance to purchase additional Bitcoin and for general corporate purposes.
It is important to emphasize that these notes will not generate interest regularly, and the principal of the notes will not increase, but they can be converted into Class A common stock of MicroStrategy under certain conditions, providing investors with the opportunity to participate in the company's stock price appreciation. In other words, if MicroStrategy's stock price rises in the future, investors can obtain higher returns through conversion rights, rather than just relying on fixed interest income.
After the announcement, MicroStrategy's stock price surged at the opening, rising 10% this morning to reach 473 US dollars.
Bitcoin at 94,000 US dollars
Meanwhile, Bitcoin also broke through 94,000 US dollars last night. According to trading data from Binance, Bitcoin's historical high has been pushed up to 94,786 US dollars. However, after breaking through 94,000 US dollars last night, it briefly plummeted by 1,500 points. Although this is not a large decline for Bitcoin, it caused severe price fluctuations in the altcoin market. In the past 24 hours, a total of 130,000 people were liquidated across the network, with a total liquidation amount of 349 million US dollars, mainly from long positions.
(This article is authorized for reprint by GT Radar)
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