MicroStrategy, led by CEO Michael Saylor, announced that it will raise $500 million in a private offering of senior convertible notes. The proceeds will fund further purchases, furthering its business strategy of accumulating Bitcoin.
BREAKING: 🇺🇸 MICROSTRATEGY TO RAISE $500 MILLION IN STOCK OFFER BUYING MORE #BITCOIN pic.twitter.com/ALsb7znGEZ
– Bitcoin Magazine (@BitcoinMagazine) June 13, 2024
MicroStrategy already owns the largest public Bitcoin company, with more than 214,400 BTC worth $15 billion on its balance sheet. As of 2020, under Saylor’s direction, it adopted Bitcoin as its primary means of storage.
The average purchase price per Bitcoin remains close to $35,000. With Bitcoin trading near $68,000, the company remains very green in its holdings.
The latest $500 million capital raising comes from the sale of senior convertible notes to qualified institutional buyers. The notes will pay interest annually and mature in 2032 unless converted or redeemed earlier.
According to the announcement, MicroStrategy may use the funds for general corporate purposes, but the purchase of Bitcoin will come first. The company will also offer initial purchasers the option to purchase an additional $75 million in notes.
MicroStrategy’s Bitcoin-buying obsession has made it Wall Street’s proxy for Bitcoin itself. The company’s stock often rises and falls with Bitcoin price movements, when investors bet on the upside of BTC.
With this latest cash injection, MicroStrategy is showing its confidence that Bitcoin will continue to appreciate in the long term. Saylor is ready to double down by getting more coins while prices stay low.
