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MicroStrategy Boosts Bitcoin Holdings with $700 Million Convertible Debt Offering. 🪙💰🔝
MicroStrategy, a major player in the crypto space, has upped the ante in its Bitcoin acquisition strategy. Originally planning a $600 million convertible debt offering, the company has now increased it to $700 million. This move enables MicroStrategy to expand its already substantial Bitcoin portfolio.
Notably, the offering grants initial purchasers the option to acquire an additional $100 million in notes within a 13-day window from the issuance date. The closing of this offering is scheduled for March 8, 2024, pending customary closing conditions.
The net proceeds from the bond sale won't be heading to a traditional investment portfolio. Instead, MicroStrategy plans to funnel them into further Bitcoin purchases and general corporate purposes. This reaffirms the company's commitment to the leading cryptocurrency.
The conversion rate for the notes is set at $1,497.68 per share, reflecting a 42.5% premium over Tuesday's closing price. This premium underlines the strong confidence in MicroStrategy's Bitcoin-centric strategy.
As of now, MicroStrategy holds an impressive 193,000 BTC, valued at around $13 billion based on current market prices. This move to raise additional capital underscores the company's belief in the long-term potential of Bitcoin.
