The post MicroStrategy Boosts Bitcoin Holdings, Raising $875M to Buy Additional BTC appeared first on Coinpedia Fintech News
MicroStrategy Inc. (NASDAQ: MSTR), a major long-term Bitcoin (BTC) investor, has announced the pricing of its convertible senior notes due in 2028. While the company had announced plans to raise $700 million, the firm has since raised the target to $875 million and an additional $135 million, which is meant for the initial purchasers.
MicroStrategy’s Bitcoin Strategy
The unicorn expects to close the ongoing offering by Thursday, September 19, 2024, whereby the firm estimates that the net proceeds from the sale of the notes will be around $864.1 million, or about $997.4 million if the initial buyers go for the extra deal.
“MicroStrategy intends to use the net proceeds from the offering to redeem all $500.0 million outstanding aggregate principal amount of MicroStrategy’s 6.125 percent Senior Secured Notes due 2028 and to use any balance of the net proceeds to acquire additional bitcoin and for general corporate purposes,” the company noted.
Earlier this week, MicroStrategy announced a redemption notice to the Convertible Senior Notes for about $523.8 million.
Additionally, the company said that it had acquired 18,300 BTCs, for $1.11 billion, between August 6 and September 12. As a result, MicroStrategy holds a total of 244.8k Bitcoins, worth more than $14 billion.
Market Impact
Over the years, MicroStrategy has proved to be a major long-term Bitcoin investor, thus instilling confidence in the digital asset industry. Furthermore, the central banks of Norway and Switzerland hold 1.123 million and 466k MSTR shares.
Amid the anticipated economic shift, which will be triggered by the expected Fed’s rate cut, Bitcoin price will break out in a similar manner to Gold.