MicroStrategy, a leading US business intelligence and analytics company, has revealed plans to buy Bitcoin again. The AI-powered company has increased its size $500 million initial offerings on convertible notes to $700 million, with the intention of using the proceeds to acquire an equivalent amount of Bitcoin. This massive purchase of Bitcoin could see the price of the cryptocurrency rise, triggered by increased demand amid price volatility.
MicroStrategy set to increase its Bitcoin holdings
In a recent Press releaseMicroStrategy announced the sale of its new $700 million convertible note offerings, which it plans to use to buy more Bitcoin and expand its already existing portfolio. significant assets. The company disclosed the pricing of the $700 million debt securities, carrying an interest rate of 2.25% and a maturity date of 2032.
MicroStrategy revealed that the convertible senior notes will be sold privately to exclusively qualified institutional investors pursuant to Rule 144A of the amended Securities Act of 1933. The business intelligence firm also disclosed plans to grant the initial purchasers senior convertible notes l option to purchase up to an additional $100 million in aggregate capital. amount of tickets within 13 days from the date of issue.
Additionally, MicroStrategy emphasized in its press release that the company intends to use the proceeds from the sale of the convertible senior notes to acquire more Bitcoin for general corporate purposes. The estimated net proceeds from the $700 million of debt securities will be approximately $687.8 million after deducting necessary commissions, the Company’s estimated offering expenses and initial purchaser discounts.
Additionally, net proceeds could generate up to $786 million if the initial purchasers purchase the additional $100 million convertible notes.
Earlier on April 29, MicroStrategy released its financial results for the first quarter of 2024, announcing its total Bitcoin holdings which reached a staggering $214,400, valued at $7.54 billion, at an average purchase price of $35,180 per BTC. According to CoinGecko, among public companies, MicroStrategy ranks as the largest holder of Bitcoin in the world, with a net value representing a market capitalization of approximately $26.53 billion as of June 14, 2024.
The company has not revealed any plans to stop its Bitcoin acquisition spree, despite witnessing significant losses during the last years. MicroStrategy’s strong commitment to expand your Bitcoin holdings has also enabled it to achieve remarkable milestones, now holding approximately 1% of all Bitcoins in existence.
Bitcoin’s Strong Accumulation Phase Could Trigger New Highs
The price of Bitcoin is currently on a downward trend, fueled by selling pressure from Bitcoin miners who have sold over 1,200 BTC, valued at $79.20 million. At the time of writing, the the value of cryptocurrency has fallen to $66,145, reflecting a 4.70% decline over the past seven days, according to CoinMarketCap.
With sales pressures increasing, MicroStrategy’s next $700 million Buying Bitcoins during this correction could serve as a catalyst for a potential price rebound. Additionally, MicroStrategy is not the only investor demanding more Bitcoin. A crypto analyst identified as “Jelle” revealed in an X (formerly Twitter) job that Bitcoin has been in a significant reaccumulation range over the past three months.
He revealed that investors had been accumulating heavily the pioneer cryptocurrency, taking advantage of its recent price drop buy more BTC in anticipation of a gain. According to Jelle, the total Bitcoin balance on exchanges has fallen by 200,000 in the last three months.
Featured image from Pixabay, chart from TradingView
