MicroStrategy just bought $50 million worth of BTC, and it's already figuring out how to get even more. The company has announced its plans to invest another $400 million in Bitcoin. It will use funds from the sale of bonds to do so. Another $400 million On December 7, the company revealed plans to issue $400 million in convertible bonds - debt securities that can be converted into shares of the issuing company. The announcement said: Microstrategy intends to invest the net proceeds of the bond sale in Bitcoin. At current prices, $400 million would increase the company's holdings by 20,833 BTC. If the company actually invested the funds, the total would already be 62,000 bitcoin in its portfolio. MicroStrategy will pay interest to shareholders every six months until 2025. The company also reserves the right to redeem the bonds for cash starting December 20, 2023. The announcement says MicroStrategy may also offer up to $60 million worth of additional bonds to its initial purchasers within 13 days of the offering. These securities will be issued pursuant to Rule 144 under the Securities Act and will be available only to qualified institutional investors. In response to MicroStrategy's announcement, Gabor Gurbacs, CEO of New York-based investment firm VanEck, suggested that the offering is more akin to a digital asset fund than a publicly traded company: The Microstrategy Effect MicroStrategy entered the world of cryptocurrencies with aplomb. In August, it revealed that Bitcoin had become its main reserve asset. The initial company purchased 21,454 BTC for $250 million. A month later, it made another purchase of 16,796 BTC for $175 million. As it later turned out, the purchases were made through the OTC and brokerage platform Coinbase. Thus, the so-called Microstrategy effect began in the cryptocurrency market. Saylor's company was followed by other companies including Square Jack Dorsey, and Stone Ridge. A few days ago, MicroStrategy CEO Michael Saylor announced that the company had purchased another 2,574 BTC, bringing its portfolio to 40,824 Bitcoins. Tags bitcoin btc Michael Saylor microstrategy
No comments:
Post a Comment