MicroStrategy led by CEO Michael SaylorThe planned sale of shares has been increased to provide additional funding for the purchase of Bitcoin. The company now seeks to raise $700 millionThe. previously announced $500 million.
MicroStrategy has increased the amount it is raising to $700 Million to acquire more #Bitcoin pic.twitter.com/B2I2uk98Ie
— Bitcoin Magazine (@BitcoinMagazine) June 14, 2024
MicroStrategy initially announced on Thursday plans to raise 500 million dollars by selling convertible senior bonds to institutional buyers. The money would be spent primarily on purchasing more Bitcoins to add to its existing corporate treasury of over 214,400 BTC worth $15 billion.
On Friday, the software analytics company increased its offering from $700 to $800 million. The offering should close by June 17.
MicroStrategy Saylor, under his direction, has aggressively amassed bitcoin since 2020. It uses borrowed money to buy Bitcoin, exploiting market volatility. The company stated that they are confident in the future appreciation of Bitcoin.
MicroStrategy can gain flexibility by selling convertible senior bonds. The convertible senior notes are due in 2032 and have an interest rate. But noteholders could convert the notes into MicroStrategy stocks before that date.
This structure allows you to take advantage of the Bitcoin price appreciation through the conversion stock option. The senior status of the notes protects holders against downside risks.
MicroStrategy has said that proceeds from Bitcoin sales may be used for corporate-wide purposes. Its intention is to increase its Bitcoin stash while the prices are low.
MicroStrategy is reaffirming its belief in Bitcoins as the primary asset for its treasury reserves. Saylor has increased his investment in the face of current market turmoil.
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Source: bitcoinmagazine.com