In keeping with its usual trend, MicroStrategy Incorporated has revealed its plans to buy more Bitcoin (BTC), which could be worth $700 million. As the firm said in its latest announcement, it plans to fund this purchase by issuing $700 million worth of Senior Convertible Notes.
MicroStrategy And Latest Bitcoin Play
Since the business intelligence and software manufacturing firm started buying BTC four years ago, its strategy has evolved with debt offerings. While the firm remains one of the best-performing on Wall Street, it accelerates its Bitcoin purchases with credit from external investors.
In the latest announcement, the firm said it will use the proceeds from the offering to redeem some of its outstanding debts. The targeted debts are those that are due for expiry in 2028. While it may use up to $500 million to redeem these debts, the balance will go toward buying more Bitcoin.
The company recently bought approximately $1.1 million worth of Bitcoin, bringing its total Bitcoin bag to 244,800 BTC, worth approximately $9.45 billion. These BTC units were purchased at an average price of $38,585 per coin. Considering the current price of the asset, which is $57,775.78, MicroStrategy’s bag remains highly profitable.
The offering of these convertible senior notes marks MicroStrategy’s confidence in the coin to grow more in the near future.
A Model For Others
The aggressive Bitcoin buying strategy by MicroStrategy is gradually becoming a global standard among tech-inclined startups. One of the firms borrowing MicroStrategy’s Bitcoin playbook is Metaplanet, a Japanese investment firm.
Though the size of its BTC portfolio is small, Metaplanet has continued to buy the coin since May. Just like the Michael Saylor-led firm, Metaplanet is also offering debt products and using the proceeds to buy BTC.
While it remains uncertain if more firms will join the Bitcoin-bandwagon, comments from experts shows these firms made profitable calls.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGECrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.
