Publicly traded company MicroStrategy intends to offer $600 million worth of convertible senior notes in a private offering to qualified institutional buyers. The company planned to use the net proceeds from the sale of the notes to acquire additional Bitcoins. Initial investors of the notes will also have an option to purchase an additional $90 million worth of the notes, which MicroStrategy could use to buy more BTC.
The news had a positive impact on the BTC market, as the crypto’s price reached a new ATH, shortly after Michael Saylor announced the news on Twitter.
On 16 February, Bitcoin briefly traded at $50,350.06 at around 12:30 PM UTC. However, the price of Bitcoin has been down by 0.2% in the past hour and was now trading at $49,401 according to data from CoinGecko.
In terms of specifics, an official release published on 16 February stated that MicroStrategy will determine certain terms of the notes such as interest rate, conversion rate, conversion price at the time of the offering’s pricing. It went on to state that around 20 February 2024, MicroStrategy may redeem a portion of the notes or for cash.
The notes will be convertible into cash or shares of MicroStrategy’s stock. They can also be convertible into a combination of cash and shares of MicroStrategy’s “class A common stock, at MicroStrategy’s election.”
As of 2 February, MicroStrategy acquired an additional 295 BTC worth about $10 million. This followed the company’s previous BTC purchase on 22 January, which was also worth $10 million.
Data from Bitcointreasuries affirms that the business intelligence firm holds 71,079 BTC, which makes the company, the largest purchaser of the asset, to date.
