MicroStrategy To Offer Fresh $700 Mln Debt To Buy More Bitcoin

American business intelligence and software firm MicroStrategy is on track to buy more Bitcoin (BTC). As Michael Saylor updated his followers, the company has announced its plans to offer a Private Offering of $700 million in Convertible Senior Notes. As is customary, a percentage of this debt will be used to buy more Bitcoin.

MicroStrategy In Epic Bitcoin Buying Streak

The Michael Saylor firm is on a major Bitcoin buying streak to sustain its Treasury Reserve Asset (TRA) policy. As announced, this offering will only be made available to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933. The proposed private offering is subject to market and other conditions.

According to the announcement, MicroStrategy intends to channel the net proceeds from this offering to redeem all $500.0 million outstanding aggregate principal amount of its 6.125% Senior Secured Notes that is due in 2028. Thereafter, the balance will go towards the acquisition of more BTC and for general purposes.

This private debt offering is coming days after the company bought $1.1 billion worth of BTC, fueling a major jump in its stock price. This huge sum marked one of its largest acquisitions since 2020 and accounted for 18,300 BTC. As aresult of the latest acquisition, MicroStrategy’s total Bitcoin holding is now pegged at 244,800 BTC.

MSTR Benefits From MicroStrategy Bitcoin Strategy

MicroStrategy started buying Bitcoin in August 2020 and has remained consistent in this regard. The firm has consistently offered Senior Convertible Notes to boost its BTC bets. In June, the Michael Saylor-led company announced an $800 million convertible notes offering. A week after, MicroStrategy purchased 11,931 Bitcoin units at an average price of approximately $65,883 per coin.

Significantly, the firm’s BTC acquisition strategy has been beneficial to stock MSTR. Compared to its counterparts, MSTR has locked in so much value in the last four years. Noteworthy, it was one of the few shares that recently surged after DNC presidential candidate Kamala Harris topped her Republican opponent Donald Trump in a debate last week.

Even the latest BTC acquisition triggered a jump in the price of the stock. Despite displaying some volatile sentiment in the pre-market hours preceding the acquisition, MSTR stock price closed the week at 18.74% to $143.29

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.