MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional Bitcoin, as well as for general corporate purposes. The company has 193,000 Bitcoins as of 2020 and continues to buy as it has cash available. The company recently purchased an additional 3,000 Bitcoins between February 15 and 25.
The actions of MicroStrategy Inc. (MSTR) they operate this Tuesday downwardsafter the company announced its intention to offer US$600 million in convertible senior corporate bonds due 2030 in a private offering aimed at qualified institutional investors. The company plans to give initial buyers a 13-day window to purchase an additional $90 million in notes.
MicroStrategy intends to use the net proceeds from the sale of the notes to acquire more Bitcoin, as well as for general corporate purposes, which led the company’s shares to lose nearly 5% this Tuesday. However, it should be noted that due to crypto fever, lThe firm’s stock soars more than 67% in the last five days and more than 160% in the last month.
MicroStrategy is a business intelligence, mobile software and cloud-based services company, but above all, She is a strong Bitcoin bettor. The company has 193,000 Bitcoins as of 2020 and continues to buy as it has cash available. The company recently purchased an additional 3,000 Bitcoins between February 15 and 25.
The plan of MicroStrategy
Nasdaq-listed company MicroStrategy plans to sell $600 million in convertible senior notes and use part of the proceeds to purchase more Bitcoin. MicroStrategy currently holds 193,000 bitcoins. The company’s CEO, Michael Saylor, a BTC advocate, claims that Bitcoin has become the “most popular investment asset in the world“.
“The notes will be senior unsecured obligations of MicroStrategy and will bear interest payable semiannually in arrears on March 15 and September 15 of each year.beginning on September 15, 2024. The notes will mature on March 15, 2030, unless earlier repurchased, redeemed or converted in accordance with their terms,” the company explained, adding:
The company clarified: “LThe interest rate, conversion rate, conversion price and certain other terms of the notes will be determined at the time of the offering price.In addition, “the notes will be offered and sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act.”
Source: Ambito
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