MicroStrategy, a software company, has announced plans to acquire more Bitcoins using the proceeds from its recent $3 billion convertible senior notes offering. The notes, which are due in 2029, were sold to institutional buyers at 0% coupon and 55% premium, with an implied strike price of ~$672. Net proceeds from the sale totaled approximately $2.97 billion after discounts, commissions, and offering expenses.
MicroStrategy intends to use the net proceeds to acquire additional Bitcoins and for general corporate purposes. Since its initial $250 million investment, MicroStrategy has amassed 331,200 Bitcoin, worth over $30 billion. This latest investment plan aligns with the company’s ongoing strategy of optimizing capital markets to increase its Bitcoin holdings, which are its primary reserve asset.
MicroStrategy’s executive team views Bitcoin as a hedge against inflation and a store of value, reinforcing its position as one of the largest institutional holders of the cryptocurrency. CEO Michael Saylor has been at the forefront of promoting Bitcoin as a transformative asset. He has recently stated, “I am Bitcoin only, 100%,” and recommended the video firm Rumble add Bitcoin to its balance sheet.
As Bitcoin inches closer to the $100K mark after reaching an all-time high of $99,199.81, MicroStrategy’s plans are likely to further boost interest in the cryptocurrency.
