MicroStrategy Inc. (NASDAQ: MSTR), a prominent long-term Bitcoin (BTC) investor, has recently announced the pricing of its convertible senior notes set to mature in 2028. Initially, the company planned to raise $700 million, but has since revised the target to $875 million, with an additional $135 million earmarked for initial purchasers.
MicroStrategy’s Bitcoin Strategy
The company aims to close the ongoing offering by Thursday, September 19, 2024. Based on projections, the net proceeds from the sale of the notes are expected to be around $864.1 million, potentially reaching approximately $997.4 million if the initial buyers opt for the additional deal.
MicroStrategy has stated, “MicroStrategy intends to use the net proceeds from the offering to redeem all $500.0 million outstanding aggregate principal amount of MicroStrategy’s 6.125 percent Senior Secured Notes due 2028 and to use any balance of the net proceeds to acquire additional bitcoin and for general corporate purposes.”
Earlier this week, the company issued a redemption notice for Convertible Senior Notes totaling approximately $523.8 million. Additionally, between August 6 and September 12, MicroStrategy acquired 18,300 BTC at a cost of $1.11 billion. Consequently, MicroStrategy’s Bitcoin holdings have increased to a total of 244.8k Bitcoins, surpassing a value of more than $14 billion.
Market Impact
Over the years, MicroStrategy has established itself as a key long-term Bitcoin investor, thereby fostering confidence within the digital asset industry. This strategic move is further underscored by the fact that central banks of Norway and Switzerland hold 1.123 million and 466k MSTR shares, respectively.
In anticipation of an economic shift, potentially triggered by an expected rate cut from the Federal Reserve, Bitcoin’s price is likely to experience a breakout similar to that of Gold. Such trends could present significant opportunities for investors and stakeholders within the cryptocurrency market.
Also Check Out:
Bitcoin News: As BTC Price Hits $60K, Will FOMC Meeting Drive A 10% Jump?
