Source: Blockchain Knight
As digital asset prices surge, Michael Saylor’s institutional investment company MicroStrategy announced plans to increase its holdings of BTC.
MicroStrategies aims to raise $600 million for the acquisition. Currently, the company holds 193,000 BTC, worth approximately $13.2 billion.
In a recent statement, institutional investment firm MicroStrategy outlined its intention to fund new BTC through convertible senior notes.
The statement reads: "MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional BTC and for general corporate purposes."
Convertible senior notes are debt securities that can be converted into equity at a later date. The US$600 million notes will be sold to qualified institutions and buyers under U.S. securities laws.
The statement mentioned: “As an operating enterprise, we are able to use cash flow and proceeds from equity and debt financing to accumulate BTC, which is our main capital reserve asset.”
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The statement further announced that this will be MicroStrategy’s unsecured senior debt and will pay interest twice a year and semi-annually starting on September 15, 2024.
Recently, MicroStrategy has maintained its consistent pattern of acquiring more BTC.
On February 7, MicroStrategy purchased another 850 BTC. Additionally, the company takes advantage of market fluctuations by ensuring that the average purchase price is lower than the current value of BTC.
Since the end of the third quarter, MicroStrategy has acquired 31,755 BTC for $1.25 billion, or a price of $39,411 per BTC.
This is consistent with Saylor’s commitment to BTC under various market conditions, including bullish and bearish trends.
In June 2023, Saylor boldly stated that the next stage for BTC, then valued at approximately $25,900, would be tenfold.
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