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Highlights
- MicroStrategy will raise $2 billion from private debt offerings
- After a brief pause, the rebranded firm said it will buy more Bitcoin
- Led by Michael Saylor, MicroStrategy holds over 2% of the Bitcoin supply
American business intelligence and software firm Strategy (formerly MicroStrategy) has announced its plans to raise funds via private debt issuance to buy more Bitcoin. The firm targets a $2 billion debt aggregate principal amount of 0% Convertible Senior Notes.
MicroStrategy and Bitcoin: The Same Template
As the firm announced, the Senior Notes are due March 1, 2030, subject to market conditions and other factors. However, the product comes with a condition that it is only available to qualified institutional buyers. If the notes are oversubscribed, the company said it can expand by up to $300 million to accommodate more investors.
Besides purchasing more Bitcoin units, MicroStrategy said it intends to use the proceeds from this offering for general corporate purposes like working capital. The latest plan to issue these debt offerings comes after Strategy paused BTC purchases for the second time within 14 weeks.
Despite the pause, market proponents remain persuaded that the firm is not derailing from its core template centered around BTC. Notably, MicroStrategy is known always to sell its stock in private, offering to buy Bitcoin.
To sustain its Bitccoin bets, the company’s shareholders voted to increase its share count earlier this month. With a 30 times increase, the firm’s authorized Class A shares moved from 330 million to 10.3 billion.
MicroStrategy Rebrands to Maintain Bitcoin Strategy
As reported earlier by CoinGape, MicroStrategy rebranded its corporate name to Strategy and unveiled a new BTC logo. For a firm that has suffered backlash for its sole pivot to BTC, it further reaffirmed its plans to bet on the coin continually.
With the rebrand, Chairman Michael Saylor hinted that rather than slow down in betting on Bitcoin, the company will double down on its efforts. Beyond regular coin purchases, the software giant plans to develop products for the ecosystem.
While no specific product has been launched, the firm has plans to develop a decentralized identity service using Ordinals inscriptions. This will help expand the use case of the Bitcoin network to Web2 users.
Model to Bitcoin Treasury Adopters
While its BTC strategy has impacted its profitability and shares onboarding on the Nasdaq-100 index, it has recorded more worldwide impact. Today, other corporate firms are adopting the MicroStrategy BTC playbook.
Firms like Semler Scientific, Metaplanet, and Riot Platforms, among others, have doubled down on BTC purchases over the past months. In addition to these firms, nation-state conversations around Bitcoin and associated ETFs are growing, with the US, Switzerland, and over 20 states in America leading the trend.
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