- The company announces a $500 million offering of convertible notes to fund further Bitcoin purchases and other expenses.
- MicroStrategy’s market value reaches $29.96 billion, positioning it as the 642nd most valuable company globally.
MicroStrategy has made a purchase of 12,000 Bitcoin for a total of $821.7 million in cash. This transaction increases the company’s holdings to approximately 205,000 coins, which represents more than 1% of the total Bitcoin currently in circulation, estimated at 19.6 million.
According to a previous ETHNews report, with this acquisition, MicroStrategy positions itself as the public company with the largest amount of Bitcoin in its holdings, surpassing other major companies such as Tesla and Coinbase.
MicroStrategy Announces Convertible Note Offering
The company has announced its intention to offer $500 million in senior convertible notes to qualified institutional investors, according to an earlier report by ETHNews. The purpose of this offering is to fund the acquisition of more Bitcoin and cover other corporate expenses.
Since the beginning of the year, MicroStrategy has purchased about 16,000 BTC, opting to fund these acquisitions through debt issuance rather than using equity capital, as it did previously.
Evolution of MicroStrategy’s Market Value
Following the announcement, MicroStrategy’s market value has seen an increase, reaching $29.96 billion, ranking it as the 642nd most valuable company in the world by market capitalization, as ETHNews previously noted. This increase is also reflected in its share price, which is up 145% in one month.
Bitcoin’s Future and MicroStrategy’s Strategy
MicroStrategy’s chairman and majority shareholder, Michael Saylor, has expressed his positive view on Bitcoin, describing it as a digital property superior to gold. He anticipates a favorable future for Bitcoin, especially with the upcoming halving event that could decrease the supply of new coins by half.
MicroStrategy Announces Proposed Private Offering of $500 Million of Convertible Senior Notes $MSTR https://t.co/nRxijBHsgX
— Michael Saylor⚡️ (@saylor) March 13, 2024
MicroStrategy’s investment strategy in Bitcoin, along with the ability to trade options on its shares, appeals to investors. The company has emphasized that the financial terms of the convertible notes are advantageous, offering a low interest rate.
This set of actions by MicroStrategy underscores its commitment to investing in Bitcoin and reflects a growing interest by corporations in incorporating cryptoassets into their financial strategies. This move signals a continued evolution in the cryptocurrency market, presenting opportunities and challenges for investors and businesses alike.
