This institutional investor will raise $600 million to buy Bitcoin

Summary:

• As the price of Bitcoin grows rapidly, MicroStrategy plans to raise $600 million through convertible senior notes to increase its Bitcoin holdings.

• MicroStrategy currently holds 193,000 Bitcoins worth approximately $13.19 billion, aiming to fund additional acquisitions.

• Saylor’s strong commitment to cryptocurrencies drives MicroStrategy’s Bitcoin accumulation strategy, which remains stable amid market volatility.

Michael Saylor’s institutional investment firm MicroStrategy announced its plans to increase its Bitcoin holdings amid a surge in digital asset prices.

MicroStrategy plans to raise $600 million for the acquisition.

The company currently holds 193,000 Bitcoins worth approximately $13.19 billion.

MicroStrategy will use advanced convertible notes

According to a recent statement, institutional investment firm MicroStrategy outlined its intention to raise additional Bitcoin via convertible senior notes.

“MicroStrategy intends to use the net proceeds from the notes to purchase additional Bitcoin and for general corporate purposes.”

Convertible senior notes are debt securities that can be converted into equity at a later date.

The $600 million of notes will be sold to persons reasonably believed to be qualified institutional buyers within the meaning of U.S. securities laws.

“As an operating business, we are able to leverage cash flow and proceeds from equity and debt financing to accumulate Bitcoin, which is our primary financial reserve asset.”

The statement further announced that this will become MicroStrategy's unsecured senior debt and will pay interest twice annually starting on September 15, 2024.

In recent years, MicroStrategy has maintained a pattern of acquiring more Bitcoins.

MicroStrategy Stable CollectionBuy Bitcoin

Meanwhile, on February 7, media reported that MicroStrategy purchased an additional 850 Bitcoins.

Furthermore, the company takes advantage of market fluctuations by ensuring that the average purchase price is lower than Bitcoin’s current value.

“Since the end of Q3, 31,755 Bitcoins have been purchased for a total value of $1.25 billion, or $39,411 per Bitcoin.”

This is consistent with Saylor’s commitment to Bitcoin under a variety of market conditions, including bullish and bearish trends.

In June 2023, Saylor boldly stated that Bitcoin, then worth about $25,900, would rise tenfold in its next phase.

The forecast suggests a potential price point of around $250,900.

The above is the detailed content of This institutional investor will raise $600 million to buy Bitcoin. For more information, please follow other related articles on the PHP Chinese website!