MicroStrategy increases planned share sale
MicroStrategy, led by CEO Michael Saylor, has increased its planned stock sale from $500 million to $700 million to acquire more Bitcoin. The company had originally announced plans to sell $500 million in convertible notes to qualified institutional buyers. These proceeds were also earmarked for acquiring additional Bitcoin. Currently, MicroStrategy owns over 214,400 BTC (Bitcoin) worth $15 billion.
Offer increased to $700 million
The offering, which was originally scheduled to close on June 17, was increased to $700 million the following day. Since 2020, MicroStrategy has been aggressively buying Bitcoin, with these purchases largely financed by debt, taking advantage of market fluctuations. Convertible bonds offer particular flexibility. They can be converted into MicroStrategy shares before their maturity in 2032. This gives investors the opportunity to benefit from an increase in Bitcoin's price while minimizing downside risk through the senior unsecured bonds' status.
Primary goal remains Bitcoin acquisition
While proceeds not used for Bitcoin could also cover general corporate needs, the primary goal remains to increase Bitcoin holdings while prices are relatively low. This approach underscores MicroStrategy's unwavering belief in Bitcoin as a key asset for corporate reserves.
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