MicroStrategy Set to Bolster Bitcoin Holdings with Another $500 Million Purchase. What Are the Plans?

MicroStrategy, a prominent American business intelligence and software development company, has announced plans to enhance its Bitcoin holdings with an additional $500 million purchase. This decision follows a recent move where the company sold approximately $800 million in convertible debt offerings to acquire about 12,000 BTC, reflecting a clear strategy to capitalize on Bitcoin's bullish momentum.

MicroStrategy Surpasses BlackRock's Bitcoin ETF Volume with 205,000 BTC Holding

With the latest purchase, MicroStrategy's total Bitcoin holdings have surged to 205,000 BTC, surpassing even BlackRock's Spot Bitcoin Exchange Traded Fund (ETF) in volume. This achievement solidifies MicroStrategy's position as the leading public company with the largest Bitcoin reserves, surpassing industry giants like Tesla and Coinbase.

MicroStrategy Market Cap Hits $29.96 Billion with 10.85% Surge in 24 Hours, Driven by Bitcoin Strategy

MicroStrategy's market capitalization has swelled to $29.96 billion, marking a remarkable 10.85% increase in the last 24 hours. Presently ranked as the world's 642nd most valuable company by market capitalization, MicroStrategy's stock value has soared by 145% in just one month, reflecting investor confidence in its Bitcoin-centric strategy.

MicroStrategy Adopts Convertible Senior Notes Strategy for Bitcoin Acquisitions

In a strategic shift, MicroStrategy plans to raise capital for Bitcoin acquisitions through convertible senior notes offerings, deviating from its previous reliance on equity. The company intends to sell these notes to qualified institutional buyers, granting early purchasers the option to buy additional notes within a specified timeframe.

MicroStrategy to Raise $500 Million via Convertible Senior Notes for Bitcoin Expansion

The convertible senior notes will remain unsecured, with semi-annual interest payments commencing in September 2024. MicroStrategy retains the right to redeem the notes from March 2028, while holders can request repurchase, with conversion terms determined at offering prices.

Proceeds from the $500 million convertible senior notes sale will primarily fund the expansion of MicroStrategy's Bitcoin holdings, alongside general corporate purposes.

BTC price falls to $72,700 | Source: BTCUSD on Tradingview.com