MicroStrategy, the largest corporate holder of Bitcoin (BTC), is planning to raise $600 million in order to acquire more Bitcoin. The company confirmed this news in a statement on March 4, stating that the funds will be raised through the issuance of senior convertible notes.
Senior convertible notes are a type of debt security that can be converted into equity in the future. These notes are considered “senior” to common stock, meaning that holders have priority in the event of bankruptcy or liquidation.
MicroStrategy intends to use the net proceeds from the sale of the notes to purchase more Bitcoin for general corporate purposes. Additionally, the company plans to grant the initial purchasers of the notes an option to buy up to an additional $90 million worth of the notes.
The maturity date for these notes is set for March 15, 2030, unless they are repurchased, redeemed, or converted earlier in accordance with their terms. Holders of the notes will have the option to convert them into cash, shares of MicroStrategy’s class A common stock, or a combination of both.
On March 4, MicroStrategy’s stock saw a 2% increase, reaching $1,359. At the same time, Bitcoin experienced an 8.1% increase, reaching $67,480 over the past 24 hours. It is quickly approaching its all-time high price of $69,000, which was reached on November 10, 2021, according to CoinGecko.
MicroStrategy’s stock has seen a significant surge of 172% over the past month. The company, led by founder and executive chairman Michael Saylor, has been at the forefront of the Bitcoin investment strategy. Currently, MicroStrategy holds 193,000 BTC, valued at $13 billion based on current prices, according to BitcoinTreasuries. With an average purchase price of $31,550, the company has gained nearly $7 billion on its investment.
This story is still developing, and more information will be provided as it becomes available.