Key Takeaways:
- MicroStrategy plans to issue $700M in convertible notes, with $500M set aside to redeem earlier debt and potential Bitcoin purchases.
- The company recently added $1.1B worth of Bitcoin, bringing its holdings to 244,800 BTC, currently valued at $14.2B.
- Despite the news, MicroStrategy’s stock dropped 4.9%, but it has surged 300% over the past year.
MicroStrategy, a Nasdaq-listed company known for significant Bitcoin investments, plans to issue $700 million in convertible senior notes maturing in 2028.
Of this amount, $500 million will be used to redeem earlier notes, while the remaining funds may be allocated for purchasing more Bitcoin.
JUST IN:
— Bitcoin Archive (@BTC_Archive) September 16, 2024
MicroStrategy to raise $700 million to buy more Bitcoin pic.twitter.com/8CPUzd2LWY
Additionally, initial purchasers can buy up to $105 million more in notes within 13 days of issuance.
This follows MicroStrategy’s recent purchase of $1.1 billion worth of Bitcoin, raising its total holdings to 244,800 BTC, valued at $14.2 billion.
Led by Michael Saylor, the company has been acquiring Bitcoin since 2020 as part of its reserve asset strategy.
Despite the recent announcement, MicroStrategy’s shares fell 4.9%, in line with Bitcoin’s price drop.
However, the company’s stock has seen a substantial 300% increase over the past year.
Other firms, like Semler Scientific and Metaplanet, have similarly issued debt to buy Bitcoin.
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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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