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MicroStrategy announces a large new debt offering to boost its bet on Bitcoin (BTC).
Yuri Molchan
The famous corporate Bitcoin investor has announced another debt offering to raise half a billion dollars to buy more BTC
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Business intelligence giant MicroStrategy, founded and run by Michael Saylor, has announced yet another debt offering to raise money by selling MSTR to investors. The goal is to raise the exorbitant sum of 500 million dollars.
Knowing the company’s Bitcoin-centric strategy, the community expects this half a billion dollars to be spent on another huge chunk of BTC soon. The press release confirms these expectations by openly stating that the proceeds from the sale of these notes will be used to purchase additional Bitcoins.
Another MicroStrategy Bitcoin bet
Post X announcing the new round of fundraising through the sale of convertible senior notes was published today by Michael Saylor.
The press release states that the company intends to offer $500 million convertible senior notes, due 2032, in a private offering to institutional buyers under the Securities Act of 1933.
The offering requires buyers to decide to purchase these bonds within two weeks, which will include the date these bonds are first issued. Interest on such bonds will be paid on June 15 and December 15 of each year. According to the press release, MicroStrategy may redeem all or a portion of these senior notes for cash.
The document also confirms that the $500 million raised will be used to purchase more Bitcoin and also for general corporate purposes. As of May 1, the company already owns 214,400 BTC valued at $7.538 billion.
Another public company follows suit
In March this yearMicroStrategy has already made a similar security offering to raise $525 million to purchase additional Bitcoin.
As reported by U.Today, earlier this week, news broke of another public company starting to accumulate Sats, a common expression within the crypto community that means buying and holding BTC. Sat, named after Bitcoin creator Satoshi, represents 0.00000001 Bitcoin.
This company is DeFi Technologies. Following the example of MicroStrategy, he made his first purchase of Bitcoin, adding 110 BTC to his Bitcoin Treasury. This amount of the world’s flagship cryptocurrency has an impressive value of $7.7 million.
At the time of writing, Bitcoin is trading at $67,811 after a decline of nearly 3% in the last 24 hours.
About the author
Yuri Molchan
Yuri is interested in technology and technical innovations. He has been writing about DLT and cryptocurrencies since 2017. He believes that blockchain and cryptocurrencies have the potential to transform the world in the future in many aspects of it. He has written for several crypto media. His articles have been cited by cryptocurrency influencers such as Tyler Winklevoss, John McAfee, CZ Binance, Max Keizer, etc.