BitcoinCryptocurrencyMarket NewsNews

Michael Saylor Raises $800M for More Bitcoin Through Convertible Notes

MicroStrategy’s executive chairman, founder, and former CEO, Michael Saylor, has recently bolstered his company’s Bitcoin reserves by selling $800 million in convertible senior notes, bringing the total Bitcoin holdings to approximately $13 billion.

MicroStrategy Completes $800 Million Offering of Convertible Notes at 0.625% Coupon and 42.5% Conversion Premium $MSTR

— Michael Saylor⚡️ (@saylor) March 11, 2024

Saylor announced the sale via his X profile, stating that MicroStrategy sold the unsecured bonds, maturing in 2030, to institutional buyers on March 8th at a rate of 0.625%. The sale yielded around $782.0 million after deductions, which the company used to acquire additional bitcoins.

Expansion of Bitcoin Holdings

Additionally, MicroStrategy plans to grant the initial purchasers of the notes an option to purchase up to an additional $90 million aggregate principal amount of the notes within a 13-day period.

Market Response and Share Price Surge

Following the announcement, MicroStrategy’s shares surged by 13% to $1,550, as investors view the company’s shares as a proxy for Bitcoin due to its strategic investment in the cryptocurrency.

Bitcoin Hits All-Time High

Bitcoin has hit an all-time high, trading around $72,000. This surge in price is driven by two main factors: the anticipation of exchange-traded funds (ETFs) and the upcoming halving event.

ETFs and Regulatory Approval

ETFs are gaining popularity as they offer a regulated way for traditional investors to gain exposure to Bitcoin. Grayscale’s Bitcoin Trust aimed to convert to an ETF but was rejected by the SEC. However, the SEC’s recent approval of eleven spot Bitcoin ETF applications has renewed optimism in the market.

Halving Event and Price Surge Expectations

Bitcoin’s upcoming halving event on April 19, where mining block rewards are halved, is expected to further drive up prices. With sustained demand for Bitcoin, the supply shortage could lead to significant price increases.

Saylor’s Confidence in Bitcoin

Overall, Saylor’s move to increase MicroStrategy’s Bitcoin reserves signals his confidence in Bitcoin’s future rally.

Gracie Perez

Gracie Perez has been an editor in the KoinHow team since we started. she holds a degree in Computer Sciences. From 2017, She has pivoted his career towards blockchain technology, with principal interest in writing Cryptocurrency news and different guides. She is also working with different online media outlets.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker