Claim $500MicroStrategy Completes $650 M Convertible Notes Offering, Intends to Buy More Bitcoin
MicroStrategy today announced that their $650 Million offering of 0.75% convertible senior notes is complete and is due to mature in Dec. 2025. The official blog also states that firm intends to invest the net proceeds from the convertible notes to purchase Bitcoin.
MicroStrategy to Invest Estimated Net Proceeds of $634.9 M in Bitcoin
MicroStrategy and CEO Michael Saylor are now well followed names in crypto trading world. The firm has already bought more than 40,000 Bitcoins and is still investing in top cryptocurrency. Recently, firm announced offering of senior convertible notes at an annual interest rate of 0.75%. The firm announced its plan to raise $400 Million by offering convertible notes and utilize the sales to purchase more Bitcoins on Dec. 8th, 2020.
MicroStrategy Completes $650 Million Offering of 0.750% Convertible Senior Notes Due 2025 https://t.co/37y84GToPe
— Michael Saylor (@michael_saylor) December 11, 2020
As mentioned in official blog the sum total amount of notes sold in the offering was $650 Million and the notes will mature on December, 2025. Another point to be worth notifying was the net sale from the proceeding which are estimated to be around $634.9 Million.
The blog states that MicroStrategy intends to invest this net proceed of $634.9 Million to Bitcoin [BTC]
MicroStrategy will invest the amount in Bitcoin in accordance with its treasury reserve policy and is pending identification of corporate purpose and capital needs.
Why Institutions are Feeling Bitcoin FOMO?
As we see the major reason why every Institution wants to jump into Bitcoin seems to be the eroding value of dollar. With more and more free money being distributed by Govt. as stimulus dollar is getting weaker with every passing month. MicroStrategy CEO Michael Saylor in an interview said,
“What we’re trying to do is preserve our treasury, the purchasing power of the cash is debasing rapidly.”
US Dollar has lost almost 10% of its value against foreign currencies since peaking in march and reached its lowest level in August since 2018.
It is only a matter of time that most institutions start investing in Bitcoin as a hedge against eroding value of US Dollar.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Trump Media Invests $40M in Bitcoin as Incoming CFTC Chair Signals Crypto Clarity Act Push in January
- Aave DAO Saga Deepens as Alignment Proposal Moves to Snapshot; AAVE Price Down 7%
- Fed’s Stephen Miran Urges More Rate Cuts In 2026 To Avoid U.S. Recession
- Breaking: $4T JPMorgan Explores Crypto Trading for Institutional Clients as U.S. Banks Embrace Crypto
- Bitcoin and Ethereum ETPs See $1B in Outflows as Institutions Rotate into XRP
- Bitcoin Price Prediction As Michael Saylor Pauses BTC Purchase- Is A Fall to $74k Imminent?
- Aster launched Phase 5 Buyback Program Allocating 80% Fees. Will ASTER Price Rally?
- XRP Price Prediction: Rare Bullish Patterns Align With Powerful Catalysts
- Weekly Crypto Price Prediction: Bitcoin, Ethereum, and XRP as Market Momentum Builds
- Will Solana Price Hit $150 as Mangocueticals Partners With Cube Group on $100M SOL Treasury?
- SUI Price Forecast After Bitwise Filed for SUI ETF With U.S. SEC – Is $3 Next?
