MicroStrategy,
a
leading
American
business
intelligence
and
analytics
company,
has
unveiled
plans
to
buy
Bitcoin
once
again.
The
AI-powered
firm
upsized
its
initial
$500
million
offerings
on
convertible
notes
to
$700
million,
intending
to
use
the
proceeds
to
acquire
an
equivalent
amount
of
Bitcoin.
This
massive
Bitcoin
purchase
could
see
the
price
of
the
cryptocurrency
rising,
triggered
by
the
boost
in
demand
amidst
price
volatility.
MicroStrategy
Set
To
Increase
Bitcoin
Holdings
In
a
recent
press
release,
MicroStrategy
announced
the
sales
of
its
new
$700
million
convertible
notes
offerings,
which
it
plans
to
use
to
buy
more
Bitcoin
and
expand
its
already
substantial
holdings.
The
company
disclosed
the
pricing
of
the
$700
million
debt
notes,
featuring
a
2.25%
interest
rate
and
a
maturity
date
in
2032.
MicroStrategy
has
revealed
that
the
convertible
senior
notes
will
be
sold
privately
to
exclusively
qualified
institutional
investors,
following
Rule
144A
under
the
amended
Securities
Act
of
1933.
The
business
intelligence
firm
has
also
disclosed
plans
to
grant
initial
purchasers
of
the
convertible
senior
notes
the
option
to
buy
up
to
an
extra
$100
million
aggregate
principal
amount
of
notes
within
13
days
from
the
issuance
date.
Additionally,
MicroStrategy
highlighted
in
its
press
release
that
the
company
intends
to
use
the
proceeds
from
the
sales
of
the
convertible
senior
notes
to
acquire
more
Bitcoin
for
general
corporate
purposes.
The
estimated
net
proceeds
from
the
$700
million
in
debt
notes
will
be
approximately
$687.8
million
after
deducting
necessary
commissions,
the
company’s
estimated
offerings
expenses
and
the
initial
purchaser’s
discounts.
Additionally,
the
net
proceeds
could
generate
as
high
as
$786
million
if
the
initial
purchasers
buy
the
extra
$100
million
convertible
notes.
Earlier
on
April
29,
MicroStrategy
released
its
first
quarter
2024
financial
results,
announcing
its
total
Bitcoin
holdings
which
have
reached
a
staggering
$214,400
valued
at
$7.54
billion
at
an
average
purchase
price
of
$35,180
per
BTC.
According
to
CoinGecko,
among
public
companies,
MicroStrategy
holds
the
rank
as
the
world’s
largest
Bitcoin
holder,
with
a
net
worth
or
market
capitalization
of
approximately
$26.53
billion
as
of
June
14,
2024.
is
currently
trading
at
$66,223.
Chart:
TradingView
The
company
has
revealed
no
plans
to
halt
its
Bitcoin
acquisition
spree,
despite
witnessing
major
losses
over
the
past
few
years.
MicroStrategy’s
strong
commitment
to
expanding
its
Bitcoin
holdings
has
also
allowed
it
to
achieve
remarkable
milestones,
now
owning
approximately
1%
of
all
Bitcoin
in
existence.
Bitcoin’s
Strong
Accumulation
Phase
Could
Trigger
New
Highs
Bitcoin’s
price
is
currently
on
a
downward
trend,
fueled
by
selling
pressures
from
Bitcoin
miners
who
have
sold
more
than
1,200
BTC,
valued
at
$79.20
million.
As
of
writing,
the
cryptocurrency’s
value
has
fallen
to
$66,145
reflecting
a
4.70%
decrease
over
the
past
seven
days,
according
to
CoinMarketCap.
With
selling
pressures
increasing,
MicroStrategy’s
upcoming
$700
million
Bitcoin
purchase
during
this
correction
could
serve
as
a
catalyst
for
a
potential
price
rebound.
Moreover,
MicroStrategy
has
not
been
the
only
investor
demanding
more
Bitcoin.
A
crypto
analyst
identified
as
‘Jelle’
revealed
in
an
X
(formerly
Twitter)
post
that
Bitcoin
has
been
in
a
major
re-accumulation
range
for
the
past
three
months.
He
disclosed
that
investors
have
been
heavily
accumulating
the
pioneer
cryptocurrency,
taking
advantage
of
its
recent
price
drop
to
purchase
more
BTC
in
anticipation
of
a
gain.
According
to
Jelle,
the
total
balance
of
Bitcoin
on
exchanges
has
dropped
by
200,000
over
the
past
three
months.
Featured
image
from
Pixabay,
chart
from
TradingView
Go to Source
Author: Scott Matherson
