The giant social media platform Twitter has announced plans to raise $ 1.25 billion through a flotation of convertible securities maturing in 2026.
The plans will be implemented through a private placement of bonds to qualified institutional buyers.
Interest on them will be “paid semi-annually in delay,” and the company will be able to convert the promissory notes into cash, ordinary shares, or a combination of two options. Once the bid price is determined, the firm will determine the interest rate, initial conversion rate, and “other terms of the bond issue.”
This significant amount will be used for “general corporate purposes, including capital expenditures, working capital and potential acquisitions.”
Despite the fact that nothing specific was said on Twitter regarding Bitcoin, the awake crypto community saw this as an opportunity to allocate some, if not all, of the amount in BTC.
Twitter just announced a $ 1.25 billion convertible bond issue. Given the recent decision by Microstrategy, could @jack plan to include Bitcoin on Twitter? Time will tell, but few people understand the power of Bitcoin the way Jack does.
Twitter just announced a $1.25 billion convertible note offering.
Given the recent treasury strategy of Microstrategy, could @jack be planning to put bitcoin on Twitter’s balance sheet?
Time will tell, but there are few people who understand the power of bitcoin like Jack.
– Pump 🌪 (@APompliano) March 1, 2021
Bitcoin proponent Anthony Pompliano quickly drew a parallel with business intelligence giant MicroStrategy. Michael Saylor’s company has raised a total of more than $ 1.6 billion from convertible senior bond offerings and placed all funds in the mainstream cryptocurrency.
Given that Twitter CEO Jack Dorsey is also a longtime supporter of BTC with numerous Bitcoin-related projects, it should come as no surprise if the social media giant follows the path taken by Michael Sailor.
Another firm, run by Dorsey Square, has already made two investments in BTC, with the second, worth $ 170 million, made less than a month ago.
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