MicroStrategy, led by CEO Michael Saylor, made the announcement Raised $500 million Through a private offering of convertible notes. The proceeds will fund additional purchases, furthering the company's Bitcoin accumulation strategy.
BREAKING: 🇺🇸 MICROSTRATEGY TO RAISE $500 MILLION SELLING STOCK TO BUY MORE #Bitcoin pic.twitter.com/ALsb7znGEZ
— Bitcoin Magazine (@BitcoinMagazine) June 13, 2024
MicroStrategy is already the largest public company holding Bitcoin, with more than 214,400 Bitcoin worth $15 billion on its balance sheet. Starting in 2020, under Saylor's supervision, it adopted Bitcoin as its primary reserve asset.
The average purchase price per Bitcoin remains around $35,000. With Bitcoin trading near $68,000, the company remains remarkably in the green regarding its holdings.
The latest capital increase of $500 million comes through the sale of convertible securities to qualified institutional buyers. Interest on the bonds will be paid semi-annually and mature in 2032 unless converted or redeemed earlier.
According to the advertisementMicroStrategy may use the funds for general corporate purposes, but obtaining Bitcoin remains the priority. The company will also give initial buyers the option to purchase an additional $75 million worth of notes.
MicroStrategy's obsession with buying Bitcoin has made it a Wall Street proxy for Bitcoin itself. The company's stock often rises and falls with Bitcoin price movements, as investors bet on BTC's upside.
With this latest capital infusion, MicroStrategy indicates its conviction that Bitcoin will continue to rise in the long term. Saylor is ready to redouble his efforts by acquiring more coins while prices remain relatively low.