MicroStrategy Wants to Buy More Bitcoin with Another Round of $690 Million Debt
"CEO Michael Saylor is carrying out one of the highest conviction investment thesis we have seen in public markets." - Bitcoin Bull Anthony 'Pomp' Pompliano
The publicly listed company has made yet another bet on Bitcoin by announcing that MicroStrategy intends to offer $600 million worth of convertible senior notes, up to an additional $90 million aggregate principal amount of the notes. The official announcement reads,
“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoins.”
Bitcoin proponent Michael Saylor, the chief executive of MicroStrategy, has already added a total of 71,079 Bitcoin to the company’s balance sheet and is now ready to add even more. MicroStrategy's $1.145 billion Bitcoin investment has them owning 0.38% of BTC circulating supply.
In December, the company issued convertible senior notes to raise $635 million, whose entire proceeds were used to buy Bitcoin. Veteran investor Bill Miller was one of the buyers of MicroStrategy’s 0.75% convertible bond who called this “unique purchase” a “very little downside and an almost-free call option on Bitcoin.”
Now, yet again, MicroStrategy is ready to take up more debt due 2027, to buy even more Bitcoin, which has been hitting $50,000 for two days in a row.
With the latest jump in prices, the leading cryptocurrency’s market capitalization rose above $940 billion, just a few inches away from the trillion-dollar mark.
MicroStrategy is going to raise another $600 million in a debt offering to buy more bitcoin.@michael_saylor is carrying out one of the highest conviction investment thesis we have seen in public markets.
Incredible to watch.
— Pomp 🌪 (@APompliano) February 16, 2021
The notes will be issued via a private offering to qualified institutional buyers, which will mature on February 15, 2027, unless earlier repurchased, redeemed, or converted and will bear interest payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2021.
#Bitcoin will likely prove to be the greatest reserve asset and store of value ever created.
DeFi will likely prove to be the future of banking and the best opportunity to help the unbanked and opt out of legacy systems.
Both are the future.
— The Wolf Of All Streets (@scottmelker) February 16, 2021