MicroStrategy, the largest corporate holder of Bitcoin, plans to raise $1.75 billion to buy more Bitcoin from senior convertible notes at 0% interest.
micro strategy said “We intend to use the net proceeds from this offering to acquire additional Bitcoin and for general corporate purposes,” the company said in a statement on November 18.
The business intelligence company's 0% senior convertible notes mean it won't pay regular interest to bondholders.
sauce: michael saylor
These convertible notes are sold at a discount but mature at face value unless converted before the maturity date (2029 in MicroStrategy's case).
They are also “senior” to common stock in the sense that their holders have priority in the event of bankruptcy or liquidation.
If MicroStrategy spent the entire $1.75 billion on Bitcoin, it could potentially buy an additional 19,065 Bitcoin at current prices.
The company now holds 331,200 Bitcoins worth more than $30.3 billion after purchasing an additional $4.6 billion worth of Bitcoin on November 18, according to Bitcoin Treasury data.
Michael Saylor's company is currently up 133% on its Bitcoin investment strategy, buying Bitcoin at an average purchase price of $39,292.
MicroStrategy purchases (green) and Bitcoin price movements (blue) since September 2020. source: sailor tracker
MicroStrategy (MSTR) stock rose nearly 13% to a closing high of $374.8 on Nov. 18, but was down 0.7% in the after-hours, Google Finance reported. data is shown.
Related: OCC Notice Suggests Launch of Spot Bitcoin ETF Options Trading Is Imminent
Last month, MicroStrategy revealed plans to raise $42 billion over the next three years to accumulate more Bitcoin under its “21/21” plan, which consists of $21 billion in stocks and $21 billion in bonds. did.
Bitcoin's price is currently $91,653, less than 2% from its all-time high of $93,477 on November 13, according to CoinGecko. data is shown.
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