MicroStrategy to Amass $600M via Senior Notes for Further Bitcoin Investment
Summary:
MicroStrategy, the leading corporate owner of Bitcoin, is planning to accumulate $600 million to further invest in the cryptocurrency. As per a press release on March 4, the funds will be acquired through the issuance of Senior Convertible notes, which can later be converted into equity. Amidst this announcement, MicroStrategy's stock and Bitcoin's price have seen a significant surge.
MicroStrategy, recognized as the top corporate owner of Bitcoin (BTC), has plans to increase its funds by $600 million to acquire more Bitcoin. This announcement from the business intelligence company was confirmed in a press release on March 4. The funds will be raised through the issue of Senior Convertible notes.
The company's CEO, Michael Saylor, confirmed their proposed private offer of $600 Million of Convertible Senior Notes on Twitter.
Senior Convertible notes refer to a type of debt security that can be transferred into equity at a future stage. They carry the "senior" title due to their position of precedence over common stock in the event of a company's bankruptcy or liquidation. An additional option to acquire up to $90 million aggregate principal amount of these notes is expected to be granted to the initial purchasers by MicroStrategy.
The maturity date for these notes is set for March 15, 2030, with an option for earlier repurchase, redemption, or conversion as per their terms. The conversion options will include cash, shares of class A common stock of MicroStrategy, or a mix of both. As the news went public, MicroStrategy's stock experienced a rise of over 2% to reach $1,359 on March 4.
The price of Bitcoin also witnessed an upswing, with an 8.1% increase in the last 24 hours to $67,480, nearing its all-time high of $69,000 attained on Nov. 10,2021, according to data from CoinGecko.
Meanwhile, speculation around a potential world where Bitcoin reaches a value of $1 million is making waves. This is an ongoing story and further updates will be provided as and when they arrive.
Published At
3/5/2024 12:37:38 AM
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