MicroStrategy announced the issuance of $600 million of senior convertible notes. According to press releasethe firm plans to use these funds to increase its Bitcoin portfolio.
Note that senior preferred notes are debt securities whose holders have some advantage in the liquidation of a company.
The company plans to offer them to “qualified institutional clients,” according to the release. The bonds mature in March 2030.
Initial purchasers will have the opportunity to purchase up to $90 million worth of securities within 13 days of their issue, the company added. Interest on securities will be paid semi-annually starting September 15, 2024.
The start date for bond conversion is September 15, 2028. Until this point, securities are subject to redemption in “exceptional cases.”
“MicroStrategy intends to use the net proceeds from the sale of the notes to purchase additional Bitcoin and for general corporate purposes,” the release stated.
As of the end of February 2024, under the control of the company located 193,000 BTC. March 5, 2024 Bitcoin tested mark of $68,000.
The average price at which MicroStrategy purchased bitcoins was $31,544. In this case, the company’s unrealized profit, taking into account the new jump in the asset’s price, would be $6.8 billion.
Following the news, MicroStrategy's stock price, MSTR, jumped 23.5% in premarket trading. The forecast for the beginning of the trading session on March 5, 2024 is $1314, according to TradingView.
Source: Cryptocurrency
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