MicroStrategy, the largest corporate holder of Bitcoin (BTC), is planning to raise $600 million in order to acquire more Bitcoin. The business intelligence firm confirmed this news in a statement on March 4. The funds will be issued as senior convertible notes, which are a type of debt security that can be converted into equity at a later date. These notes have priority over common stock in the event of bankruptcy or liquidation.
MicroStrategy stated that it intends to use the net proceeds from the sale of the notes to purchase more Bitcoin for general corporate purposes. Additionally, the company expects to grant the initial purchasers of the notes an option to buy up to an additional $90 million worth of the notes.
The maturity date for these notes is set for March 15, 2030, unless they are repurchased, redeemed, or converted earlier. They can be converted into cash, shares of MicroStrategy’s class A common stock, or a combination of both.
On March 4, MicroStrategy’s stock saw a 2% increase, reaching $1,359. Meanwhile, Bitcoin experienced an 8.1% increase over the past 24 hours, currently valued at $67,480. It is rapidly approaching its all-time high price of $69,000, which was reached on November 10, 2021, according to CoinGecko. MicroStrategy’s share price has soared by 172% over the course of the month.
MicroStrategy’s founder and executive chairman, Michael Saylor, has been the driving force behind the company’s Bitcoin investment strategy. Currently, the firm holds 193,000 BTC, valued at $13 billion based on current prices. With an average buy price of $31,550, MicroStrategy has seen a substantial profit of nearly $7 billion on its investment.
This is an ongoing story, and more information will be provided as it becomes available.