MicroStrategy to Raise $500M for Bitcoin Buy; Terraform Labs Settles SEC Suit for $4.47B
Summary:
MicroStrategy plans to raise $500 million to buy more Bitcoin, and Bitcoin whales accumulated $1.4 billion of the cryptocurrency during a market correction. Meanwhile, Terraform Labs has agreed to pay $4.47 billion to settle a lawsuit with the US Securities and Exchange Commission.
MicroStrategy, led by Michael Saylor, intend to grow their Bitcoin holdings with a new raise of $500 million. Concurrently, with Bitcoin's price decreasing ahead of a Federal Open Market Committee (FOMC) gathering, whale wallets collected around $1.4 billion in Bitcoin on June 11. Simultaneously, Terraform Labs faces a payment of $4.47 billion as part of a settlement with the US securities regulatory authority.
MicroStrategy is preparing to offer convertible senior notes worth $500 million that are due in 2032, with the goal of acquiring more Bitcoin. As outlined in a press statement, the company plans for the proceeds to primarily be spent on buying additional Bitcoin and for other common business-related needs. Providing these offerings to qualified institutional purchasers according to the Securities Act 1933's Rule 144A, the company has clarified that these notes, which will have the status of unsecured senior obligations of MicroStrategy, will mature by June 15, 2032. Despite the dependence on market conditions, this action aligns with MicroStrategy's strategy of using Bitcoin as its primary treasury reserve asset.
On June 11, following a drop in the Bitcoin price, Bitcoin whales purchased a total of 20,600 BTC, equivalent to $1.38 billion. As per the blockchain analytics firm CryptoQuant, the day marked the largest inflow day for Bitcoin whales since February 28. During the market downturn, the accounts of Bitcoin whales received between 1,300 and 2,200 Bitcoins daily, leading to June 11, the day of great influx with 20,600 Bitcoins amassed by whale wallets. As per the current trading data, Bitcoin's price remains at $67,500.
In a resolution to a civil lawsuit filed by the Securities and Exchange Commission (SEC), Terraform Labs has consented to pay approximately $4.47 billion. The comprehensive remedies include nearly $3.6 billion in disgorgement fines, a civil penalty of about $420 million and almost $467 million in prejudgment interest. Following a jury verdict that found Terraform Labs and its co-founder accountable for the collapse of the Terra ecosystem, causing a $40 billion loss in investor assets, this settlement was obtained. The lawsuit filed by SEC in 2023 argued that Terraform Labs and its founder, Do Kwon, had marketed unregistered securities and defrauded investors, resulting in a loss of billions for the asset holders.
Published At
6/13/2024 3:37:21 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.