Bitcoin Set For Monster Rally: MicroStrategy’s Upsized $700M Notes Sale Could Thrust Bitcoin To $100K

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The crypto market is ablaze with excitement with the price of Bitcoin recently seeing a tremendous upsurge, hinting at a potential climb to unprecedented levels soon. Over the last seven days, BTC has demonstrated a vigorous uptrend, surging to a new lifetime high above $69K.

Adding to the bullish momentum, MicroStrategy, the business intelligence company best known for its relentless commitment to stockpiling the benchmark crypto has raised its convertible debt offering to $700 million from $600 million as part of a move to acquire more BTC and boost its cache even further.

MicroStrategy To Buy More BTC With Proceeds From $700M Convertible Notes Sale

MicroStrategy announced on March 5 that it plans to offer a private sale of $600 million worth of convertible senior notes, with intentions of using the funds to acquire more Bitcoin (BTC) and for its corporate expenses. However, MicroStrategy has since upsized its convertible debt offering by $100 million.

According to a statement on March 6, the software intelligence company is seeking to raise $700 million through the sale of convertible senior notes at an interest rate of 0.625% per annum.

The conversion price for the notes will be equivalent to $1,497.68 per share, indicating a 20% premium compared to the trading price today of $1,232.45.

MicroStrategy Announces Pricing of Offering of Convertible Senior Notes $MSTR

— Michael Saylor⚡ (@saylor) March 6, 2024

“Holders of notes may require MicroStrategy to repurchase their notes on September 15, 2028, or upon the occurrence of certain events that constitute a fundamental change under the indenture governing the notes at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus any accrued and unpaid interest,” the statement reads.

MicroStrategy’s gargantuan Bitcoin portfolio is currently valued at over $13 billion. The Michael Saylor-founded company is the largest corporate holder of BTC, with 193,000 BTC on its balance sheet. Notably, MicroStrategy bought an additional 3,000 Bitcoins in late February for $155 million, just before the recent 20% BTC rally.

By issuing the convertible notes, MicroStrategy is taking advantage of a major rally in its stock price in recent weeks as Bitcoin surpasses its November 2021 peak.

The notes, set to mature on March 15, 2030, will target qualified institutional and accredited investors and will be unsecured senior obligations of MicroStrategy, attracting interest payable semi-annually. The firm also intends to provide an option to potentially purchase another $90 million worth of notes after the initial issuance.

MicroStrategy first started purchasing BTC in earnest in August 2020, led by outspoken Bitcoin crusader Michael Saylor. The company has already previously used equity sales to finance nine-figure BTC purchases in the past.

With an average purchase price of $31,550, MicroStrategy is currently sitting on over $6 billion in unrealized profits on its Bitcoin bet.

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