MicroStrategy CEO Increases Convertible Senior Notes Offering to $635M to Buy More Bitcoin

Michael Saylor just doesn’t give a f—. As we reported, the company's share dived 17% after Citi released its bearish report on MicroStrategy, where the analyst questions Saylor’s focus on Bitcoin.

While Citi analysts called Bitcoins’ rally “overextended,” it has been the Bitcoin investment that helped the company shares rise to a level not seen since 2000. In 2020, BTC has rallied more than 150% on top of 2019’s 90% gains.

MicroStrategy CEO announced today the pricing of the offerings of the convertible senior notes.

As per the official announcement, the offering amount has been bumped up to $550 million from the previous $400 million as shared in Monday's announcement. The official announcement reads,

“MicroStrategy estimates that the net proceeds from the sale of the notes will be approximately $537.2 million (or approximately $634.9 million if the initial purchasers exercise in full their option to purchase additional notes).”

These notes that are due in 2025 will bear interest at a rate of 0.750% per annum, payable semi-annually in arrears on June 15 and December 15, starting next year. They will be sold in a private offering to qualified institutional buyers, and the offering is expected to close on December 11, 2020.

These notes will be convertible into cash, shares of MicroStrategy’s class A common stock, or a combination of them.

But of course, the most interesting part of it all is that the company intends to invest the net proceeds from the sale of notes in Bitcoin per its Treasury Reserve Policy. Bitcoin advocate Max Keiser said,

“Michael_saylor⁩ /⁦MicroStrategy⁩ is making a speculative attack on the Fed/USD like Soros/Druckenmiller did against the BoE/GBP in 1992, ejecting it from the ERM.”

“Saylor has pulled the pin and tossed a grenade into the Fed’s boardroom.”

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide