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MicroStrategy Issues $500 Million in Convertible Notes to Buy More Bitcoin
MicroStrategy, the largest corporate holder of Bitcoin, is planning to issue unsecured senior convertible notes worth $500 million. The goal is to use the funds raised to purchase additional BTC for its treasury.
In April, MicroStrategy acquired an extra 122 BTC, boosting its total Bitcoin holdings to 214,400 BTC. At the time of writing, this stash is valued at approximately $14.52 billion. Remarkably, the company now possesses over 1% of Bitcoin’s total supply, which is capped at 21 million BTC.
This move solidifies MicroStrategy’s lead over its competitors, with its Bitcoin reserves surpassing those of the next-largest corporate holder, Marathon Digital, by more than 196,000 BTC.
Details of the Offering
The notes being issued will accrue interest, payable semi-annually on June 15 and December 15 of each year, starting December 15, 2024. The maturity date for the notes is set for June 15, 2032, unless they are repurchased, redeemed, or converted earlier.
It’s important to note that the sale of these senior convertible notes will be restricted to qualified institutional investors.
Michael Saylor, MicroStrategy’s founder and chairman, a vocal proponent of Bitcoin, recently showed a more favorable attitude towards Ethereum. This shift came following the U.S. Securities and Exchange Commission’s approval of Ethereum spot ETFs.
MicroStrategy Inc. (NASDAQ: MSTR) saw a 3.1% increase in its share price during the last trading session. Year-to-date, the company has experienced a remarkable 134% surge.
Emulating MicroStrategy’s Bitcoin Strategy
MicroStrategy’s Bitcoin investment strategy has inspired other companies to follow suit. For instance, Semler Scientific, a medical technology firm, recently purchased $17 million worth of Bitcoin and plans to acquire up to $150 million more in the future.
Similarly, DeFi Technologies, a Canadian firm, bought 110 BTC valued at $7.6 million, while Japanese investment firm MetaPlanet invested $1.6 million in Bitcoin earlier this month.
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