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In a tweet published just now, the tireless leader of Strategy (formerly known as MicroStrategy), Michael Saylor, announced that his company has successfully completed a security offering that helped them raise a mind-blowing $2 billion from investors. He shared a fresh press release issued by the company.
Gamza Khanzadaev$2 billion to buy more Bitcoin
That campaign executed an offering of 0% convertible senior notes due to expire in 2030 – Strategy has sold $2 billion worth of them. The document stresses that the notes were sold in a private offering only to “persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933.”
A bonus for initial purchases was the opportunity to buy an extra $300 million aggregate principal amount of notes within five days from the date when those notes were first issued.
While these senior notes will mature on March 1, 2030, holders will be able to convert their notes starting Dec. 3, 2029, and receive a combination of cash and MSTR class A common shares at the company’s choice.
The net proceeds from this fundraising offering constituted $1.99 billion after all fees and estimated expenses were deducted. The company plans to use them to acquire more Bitcoin and for working capital, according to the press release.
Yuri MolchanStrategy's Bitcoin strategy
By now, the company that started as MicroStrategy and formerly produced only business intelligence software radically changed its business strategy in August 2020, when it began its continuous Bitcoin bet and bought its very first stash.
Since then, MicroStrategy has continued to buy BTC regularly, raising additional funds for it by selling either its A class stock or offering senior convertible notes to institutional investors.
By now, the company holds 478,740 BTC worth nearly $50 billion in fiat. Last Friday, the world’s primary cryptocurrency, Bitcoin, took a massive blow as it crashed by 4.5%. On the very same day, the UAE-based crypto exchange Bybit suffered a painful $1.4 billion hack of Ethereum.
After plunging below $95,000 on that day, to date, Bitcoin has managed to recover only by roughly 1% and is changing hands at $95,910 per coin.
Vladislav Sopov
Dan Burgin