MicroStrategy is set to invest another $700 million in bitcoin, a move that could boost the price amidst current market volatility.
MicroStrategy stacking sats coins
MicroStrategy, a top American business intelligence company, wants to increase its bitcoin holdings again by buying $700 million worth of coins.
The company has raised its original $500 million convertible notes offering to $700 million, planning to use the proceeds to buy bitcoin.
MicroStrategy announced the sale of $700 million in convertible notes to buy more Bitcoin, and these notes, with a 2.25% interest rate and maturing in 2032, will be sold privately to qualified institutional investors.
There is also an option for these investors to buy an extra $100 million in notes within 13 days of issuance.
After expenses, the sale’s proceeds are estimated to be $687.8 million, which will be used to acquire bitcoin for general corporate purposes. If investors buy the additional $100 million in notes, the total proceeds could reach $786 million.
Winner bet
MicroStrategy’s first-quarter 2024 financial results show it holds 214,400 bitcoin valued at around $7.54 billion, with an average purchase price of $35,180 per bitcoin.
This makes MicroStrategy the largest bitcoin holder among public companies, with a market capitalization of apx. $26.5 billion.
MicroStrategy remains committed to growing its bitcoin reserves, now owning about 1% of all bitcoin’s total supply.
Saylor isn’t alone
Market analysts often say in social media that bitcoin has been in a major re-accumulation phase for the past three months, and investors have been buying more and more bitcoin, taking advantage of the price dip in anticipation of future gains.
Over the past three months, the available balance on exchanges has decreased by 200,000 bitcoin, and many thinks this is a strong sign of the accumulation.
MicroStrategy’s ongoing strategy to increase its Bitcoin holdings is no doubt works, and combined with the current accumulation trend among both institutional and retail investors, might lead to a visible price surge.
