MicroStrategy plans to raise capital for Bitcoin investment
MicroStrategy, led by CEO Michael Saylor, plans to raise $500 million through a private offering of convertible senior notes to fund additional Bitcoin purchases. The company is already the largest public holder of Bitcoin, with over 214,400 BTC (Bitcoin), valued at $15 billion. Since 2020, MicroStrategy has adopted Bitcoin as its primary reserve asset. The company's average purchase price for Bitcoin is around $35,000, while Bitcoin is currently trading near $68,000.
$500 million to finance Bitcoin purchases
The $500 million will be raised through the sale of convertible senior notes to qualified institutional buyers. These bonds pay interest semi-annually and mature in 2032 unless converted or redeemed earlier. Although the funds raised could potentially be used for general corporate purposes, acquiring more Bitcoin remains the priority. Additionally, initial buyers will be given the option to purchase an additional $75 million worth of bonds.
MicroStrategy as a proxy for Bitcoin
MicroStrategy's deep commitment to Bitcoin has made the company a proxy for Bitcoin in the stock market. The company's share price often reflects Bitcoin's movements. This latest capital raise underscores the company's belief in Bitcoin's long-term appreciation, as Saylor looks to acquire more while prices are relatively low.
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