Accurate strategyA leading American business intelligence and analytics company has revealed plans to buy Bitcoin again. The AI-powered company has scaled up Initial offerings of $500 million in convertible securities to $700 million, with the aim of using the proceeds to acquire an equivalent amount of Bitcoin. This massive purchase of Bitcoin may cause the price of the cryptocurrency to rise, due to increased demand amid price fluctuations.
MicroStrategy is set to increase Bitcoin holdings
at recent days press releaseMicroStrategy announced $700 million in sales of its new offering of convertible notes, which it plans to use to buy more bitcoin and expand its existing offering. Large property. The company revealed the pricing of the $700 million debt securities, which feature an interest rate of 2.25% and a maturity date in 2032.
MicroStrategy has revealed that Senior notes are convertible They will be sold privately to exclusively qualified institutional investors, pursuant to Rule 144A under the Revised Securities Act of 1933. The business intelligence firm also disclosed plans to give initial purchasers of the convertible senior notes the option to purchase up to $100 million of additional aggregate principal. The amount of the notes must be paid within 13 days from the date of issuance.
Additionally, MicroStrategy highlighted in its press release that the company intends to use proceeds from sales of convertible senior notes to… Get more Bitcoin For general company purposes. The estimated net proceeds from the $700 million debt securities will be approximately $687.8 million after deducting necessary commissions, estimated company offering expenses and initial buyer discounts.
Additionally, net proceeds could generate up to $786 million if the initial purchasers purchase an additional $100 million of convertible notes.
Earlier on April 29, MicroStrategy Released It announced its financial results for the first quarter of 2024 Total Bitcoin holdings any It reached a staggering $214,400 worth of $7.54 billion at an average purchase price of $35,180 per bitcoin. According to CoinGecko, among public companies, MicroStrategy ranks as the world's largest Bitcoin holder, with net value Or a market capitalization of approximately $26.53 billion as of June 14, 2024.
The company did not reveal any plans to stop its Bitcoin acquisition spree, despite what it witnessed Big losses Over the past few years. MicroStrategy's strong commitment to Expanding its Bitcoin holdings It has also allowed her to achieve remarkable achievements, as she now has approx 1% of the total Bitcoin in existence.
Bitcoin's strong accumulation phase could lead to new highs
Bitcoin price It is currently in a downtrend, fueled by selling pressure from Bitcoin miners who have mined Bitcoin Sold More than 1,200 Bitcoins worth $79.20 million. At the time of writing this report, The value of the cryptocurrency has fallen to $66,145, reflecting a 4.70% decline over the past seven days, according to CoinMarketCap.
With selling pressure mounting, MicroStrategy will receive $700 million coming Buy Bitcoin During this correction it can act as a catalyst for potential Price recovery. Furthermore, MicroStrategy was not the only investor demanding more Bitcoin. Cryptocurrency Analyst Named “Jelle” Revealed on X (formerly Twitter) mail That Bitcoin has been in a significant re-accumulation range over the past three months.
He revealed that the investors were accumulate significantly The leading cryptocurrency, benefiting from its novelty prices drop To buy more BTC in anticipation of gains. According to Jelly, the total balance of Bitcoin on exchanges has decreased by 200,000 over the past three months.
Featured image from Pixabay, chart from TradingView
