MicroStrategy, the big dog in holding Bitcoin (BTC) among companies, is gearing up to raise an extra $600 million to buy even more. The company recently shared the news, saying they’re issuing senior convertible notes for this.
These notes are like IOUs that can turn into company shares later on. They’re called “senior” because if things go south and the company tanks, note-holders get the first take on whatever’s left.
MicroStrategy Eyes $600M Boost for Bitcoin Purchases
Led by Michael Saylor, MicroStrategy has been on a Bitcoin shopping spree since mid-2020. They’re sitting on a pile of 193,000 tokens, which adds up to over $13 billion at the current Bitcoin price.
These notes are good until March 15th, 2030, unless something else happens before then. And when the time comes, holders can trade them for cash, shares of MicroStrategy’s class A common stock, or a mix of both.
MicroStrategy Announces Proposed Private Offering of $600 Million of Convertible Senior Notes $MSTR https://t.co/PEN5dxesIb
— Michael Saylor⚡️ (@saylor) March 4, 2024
More About Bitcoin
MicroStrategy’s move to buy more Bitcoin comes as the cryptocurrency hit a new all-time high of $69,300 on Tuesday. This milestone comes after nearly two and a half years since the last peak in the bull market.
In November 2021, Bitcoin lost steam and entered what felt like a never-ending crypto winter. It wasn’t until the start of 2023 that things started looking up again. Since then, Bitcoin’s price has been on a steady climb, exploring new territories.
🚨 BREAKING 🚨
BITCOIN HAS MADE A NEW ATH IN 14 OF THE G20 NATION CURRENCIES
SOON, IT WILL MAKE A NEW ATH IN USD TOO pic.twitter.com/8HTNipNRRn
— Ash Crypto (@Ashcryptoreal) March 4, 2024
But this latest high was short-lived. On Tuesday morning, Bitcoin briefly soared to $69,210, as per Coin Metrics, before quickly retracting. By late afternoon, it had dropped by 8%, settling at $61,973.37.
Despite the recent surge, some investors are sounding the alarm. With Bitcoin already up by 45% this year, they worry that things might soon cool down, especially as unrealized profit margins hit extreme levels.
BTC’s climb to a new record is a significant accomplishment for the crypto industry. The industry was drowning in negative press and regulatory issues just a few months ago. The collapse of big platforms like FTX threw the market into deep uncertainty. By the end of 2022, bitcoin had plummeted 64% to its lowest point. However, it has been battling its way back ever since. And the market is beginning to see new opportunities.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.