Cryptocurrencies To Watch

Tag: MicroStrategy

  • MicroStrategy to Raise $700 Million for Bitcoin Acquisition

    MicroStrategy to Raise $700 Million for Bitcoin Acquisition

    Publicly traded business intelligence company MicroStrategy, led by Michael Saylor, has revealed its intention to launch a whopping $700 million aggregate principal amount of convertible notes to qualified institutional investors. The company’s latest announcement follows the latest U.S. Securities Exchange Commission (SEC) amendment of Rule 144A under the Securities Act of 1933.

    MicroStrategy to Acquire More BTC with Notes

    MicroStrategy’s latest announcement shows the company’s plan to use funds from the convertible notes to redeem all $500 million outstanding principal amount of its senior secure notes while using the remaining amount to boost its bitcoin stack and settle other general corporate duties.

    The business intelligence firm is introducing a flexible offering structure for its latest note issuance to cater to the diverse needs of many institutional investors. This structure provides early-bird purchasers with a range of attractive options. One of these options allows institutions to secure notes within a limited 13-day window starting on the issuance date.

    The notes will bear interest, paid semi-annually on March 15 and September 15 of every year, and mature by 2028. However, MicroStrategy may redeem all or some portions of the notes for cash before the maturity date. 

    The company will only sell its convertible notes to investors believed to be qualified institutional buyers under the latest Securities Act of 1933. As noted by the company, any offer of the notes will be made only using a “private offering Memorandum.” This means that the sale of MicroStrategy’s notes and stocks will not be registered under the securities laws. 

    MicroStrategy Set Bitcoin Adoption Pace

    MicroStrategy has gained popularity in the crypto industry for being the first public company to invest in BTC in the United States. Since 2020, the business intelligence company has not paused its bitcoin acquisition spree. Currently, the firm holds 244,800 BTC worth more than $14 billion.

    Saylor, the company’s crypto-enthusiastic chairman, recently revealed that he owns over $1 billion in bitcoin and has not stopped adding more BTC to his stack.

    Following MicroStrategy’s footsteps are Japanese company Metaplanet, which adopted Bitcoin as its primary reserve asset earlier this year, Marathon Digital, Bitcoin Miner Cathedra, which has suspended its Bitcoin mining to focus on acquiring the crypto from the open market, and a few other publicly traded companies across the globe.

  • MicroStrategy Spends $1.11 Billion to Acquire an Additional 18,300 BTC

    MicroStrategy Spends $1.11 Billion to Acquire an Additional 18,300 BTC

    MicroStrategy co-founder and executive chairman Michael Saylor has announced the company’s purchase of an additional 18,300 Bitcoin worth $1.11 billion. This further cements the firm’s position as the world’s largest corporate BTC holder. Its current Bitcoin stash totals 244,800 BTC.

     

    MicroStrategy Boosts BTC Portfolio

    MicroStrategy has consistently funded its Bitcoin purchases through share sales. In late 2023, the company raised $750 million by selling shares, intending to allocate these funds toward additional Bitcoin acquisitions.

    In August, MicroStrategy announced plans to raise $2 billion by selling Class A shares. The proceeds will be used for general corporate purposes, including further Bitcoin acquisitions. Although the exact timeline for the share sale remains undisclosed, the company’s commitment to its BTC purchasing strategy is clear.

    MicroStrategy funded its latest Bitcoin acquisition through the announced share sale facilitated by multiple financial institutions, effective August 1. The sales proceeds enabled the company to raise sufficient capital.

    MicroStrategy sold over 8 million shares under the agreement and generated approximately  $1.11 billion. The raised funds were directly invested in expanding the company’s Bitcoin holdings. Between August 6 and September 12, the Virginia-headquartered company acquired 18,300 BTC at an average price of $60,408.

    Other Corporations Trail MicroStrategy

    Following MicroStrategy’s previous acquisitions of 12,000 BTC in June and 9,245 BTC in March, it is notable that the company’s total Bitcoin holdings are over 1% of the crypto’s fixed supply of 21 million. Its Bitcoin investment value has increased by 17% year to date (YTD), further solidifying its position in the crypto market.

    This financial growth spurred by Bitcoin investment may have intrigued other firms like the Japan-based investment company Metaplanet, as they are already imitating MicroStrategy’s buying pattern. The Japanese firm acquired 38.4 BTC for $2.1 million and 20 BTC for $1.2 million, showing its commitment to building a significant Bitcoin holding.

    In recent months, Semler Scientific, a medical company, has also expanded its Bitcoin holdings. The company invested $40 million in 654 BTC in May, followed by a $17 million purchase of 247 BTC in June. Last month, it added 81 BTC to its holdings for $5 million, showing its commitment to diversify its assets and invest in Bitcoin.