MicroStrategy has initiated a fresh attempt to acquire additional Bitcoin by issuing a $700 million debt note for the second time this month.
MicroStrategy, an American software and business intelligence company, is on course to acquire additional Bitcoin (BTC).
The company has announced its intention to conduct a Private Offering of $700 million in Convertible Senior Notes, as Michael Saylor informed his followers. As is customary, a portion of this debt will be allocated to acquiring additional Bitcoin.
MicroStrategy On Bitcoin Buying Streak
The Michael Saylor firm is currently engaged in a significant Bitcoin purchasing spree to maintain its Treasury Reserve Asset (TRA) policy.
As previously stated, this offering will be exclusively available to qualified institutional purchasers under Rule 144A of the Securities Act of 1933. The proposed private offering is contingent upon market and other conditions.
According to the announcement, MicroStrategy intends to redeem the entire $500.0 million outstanding aggregate principal amount of its 6.125% Senior Secured Notes that are due in 2028 with the net proceeds from this offering.
Subsequently, the remaining funds will be allocated to acquiring additional BTC for general purposes.
The company’s stock price experienced a significant increase in the days following its acquisition of $1.1 billion in BTC, which catalyzed this private debt offering.
This substantial quantity represented one of its most significant acquisitions since 2020 and amounted to 18,300 BTC. The most recent acquisition has resulted in a total Bitcoin holding of 244,800 BTC for MicroStrategy.
MicroStrategy Provides Advantages to MSTR Bitcoin Strategy
In August 2020, MicroStrategy initiated the acquisition of Bitcoin and has maintained this practice. The organization has consistently issued Senior Convertible Notes to augment its Bitcoin wagers.
The convertible notes offering of $800 million was announced by the company led by Michael Saylor in June. Approximately one week later, MicroStrategy acquired 11,931 Bitcoin units at an average price of approximately $65,883 per coin.
Stock MSTR has benefited significantly from the company’s BTC acquisition strategy. MSTR has secured significant value over the past four years compared to its peers.
It was one of the few shares that recently experienced a surge in value following the recent victory of DNC presidential candidate Kamala Harris over her Republican opponent, Donald Trump, in a debate last week.
The stock price experienced a significant increase in response to the most recent BTC acquisition. Although the stock price of MSTR fluctuated in the hours leading up to the acquisition, it ultimately concluded the week at $143.29, representing an 18.74% increase.
