$175 Million Added to MicroStrategy’s Offering: Is Target Bitcoin?

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As a seasoned crypto investor with over a decade of experience under my belt, I find MicroStrategy’s latest move to increase its financing through convertible senior notes from $700 million to $875 million intriguing. This expansion in their Bitcoin holdings further validates the belief that Bitcoin is not just a passing trend but a long-term strategic asset.

MicroStrategy has significantly expanded its funding approach, as the firm announced an increase in funds raised through convertible senior notes from $700 million to $875 million. Moreover, there’s an extra $135 million option available to the initial buyers.

It’s common knowledge that MicroStrategy currently ranks among the top Bitcoin holders, and this recent growth indicates they plan to further grow their crypto assets. MicroStrategy, led by CEO Michael Saylor, frequently emphasizes that Bitcoin is crucial to their long-term strategic vision.

Starting from tomorrow, September 19, 2024, these private notes will be exclusively sold to eligible institutional investors at an annual interest rate of 0.625%. These are unsecured senior obligations that will mature on September 15, 2028, in compliance with Rule 144A of the Securities Act.

Provided that the specified conditions in the agreement are met, it is possible to initiate early redemption as early as December 2027. However, MicroStrategy’s stock must surpass 130% of the set conversion price over a defined timeframe for redemption to be activated.

Running #Bitcoin

— Michael Saylor⚡️ (@saylor) September 17, 2024

It is worth mentioning that the company plans to use the money from the offering, which is expected to be around $864.1 million, to redeem $500 million in 6.125% Senior Secured Notes in 2028. 

After the buyback process is finalized, the assets serving as collateral for the Senior Secured Notes, approximately 69,080 Bitcoin, will become available. Any excess funds could potentially be utilized to acquire additional Bitcoin, demonstrating the company’s optimism towards cryptocurrencies.

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2024-09-18 18:08