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In summary
- MicroStrategy expanded its convertible note offering from $1.75 billion to $2.6 billion to continue buying Bitcoin.
- The high demand for the notes in 48 hours motivated the increase in supply, aimed at institutional buyers.
- The company, with more than 331,000 BTC, has seen its shares rise 870% in the last year due to the growth of Bitcoin.
MicroStrategy’s thirst for Bitcoin cannot be quenched, despite holding over $31 billion in BTC.
Just two days after announcing a plan to sell $1.75 billion in convertible notes as a means to buy more of the world’s top Cryptocurrency, the company said Wednesday that it has expanded that offering to $2.6 billion in notes.
Michael Saylor, co-founder and chief executive of MicroStrategy, said the decision was made due to “high demand” for the new notes in the past 48 hours.
Like those initially offered on Monday, the additional interest-free senior notes announced today will mature in 2029 and will only be available to qualified institutional buyers. Eventually, they will be redeemable for cash, MicroStrategy shares, or a combination of both.
This is a very tempting offer for many Wall Street investors, given the recent explosive growth of MicroStrategy stock. The company, which holds more than 331,000 BTC, 1.58% of the total possible supply of the cryptocurrency, has seen its shares soar more than 870% in the last year, following the rise of Bitcoin. Earlier this month, the stock hit an all-time high.
If MicroStrategy manages to raise another $2.6 billion to buy more Bitcoin, it could acquire around 27,450 BTC at current prices.
While MicroStrategy used to bill itself as a business intelligence and software company, the company’s bold bet on Bitcoin has upended not only its shareholder value, but also the way it views itself now: as the “first and largest Bitcoin treasury company in the world.”
Edited by Andrew Hayward
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