MSTR shares surge by 23% following announcement of $600m investment to acquire additional Bitcoin.
MicroStrategy, the largest corporate holder of Bitcoin, is set to expand further with a new offering of $600 million in convertible notes to purchase more cryptocurrency. The company aims to use the funds to buy Bitcoin, which is currently approaching its all-time high in market capitalization.
In an official press release, MicroStrategy announced that the offering, which is due in 2030, will be available only to qualified institutional buyers. Additionally, the Virginia-based business analytical software provider plans to grant initial purchasers of the notes the option to acquire an additional $90 million worth of notes within 13 days.
MicroStrategy stated that holders of the notes will have the right to request the company to repurchase all or part of their notes for cash on September 15, 2028. The notes can be converted into cash, shares of MicroStrategy’s class A common stock, or a combination of both at the company’s discretion.
This move is not unfamiliar to MicroStrategy, as it has previously issued convertible notes in 2021 and 2020 to strengthen its Bitcoin holdings. At present, MicroStrategy and its subsidiaries hold around 193,000 BTC, which is valued at approximately $13 billion based on current market rates.
MicroStrategy’s decision to increase its Bitcoin holdings aligns with the cryptocurrency’s nearing of its all-time high, which stands at around $67,125 according to CoinGecko data. Following the announcement, MicroStrategy’s shares experienced a 23% surge, as reported by Google Finance.
In a Bloomberg interview in mid-February, MicroStrategy founder Michael Saylor made it clear that the company has no plans to sell any Bitcoin from its balance sheet. Saylor emphasized the significant capital flow from traditional analog systems to the digital economy, amounting to hundreds of millions of dollars.
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