MicroStrategy to Raise $525M to Acquire More Bitcoins

Microstrategy Inc. (NASDAQ: MSTR) has recently accelerated its Bitcoin (BTC) acquisition pace to match up with the top-tier spot BTC ETF issuers, led by BlackRock’s iShares Bitcoin ETF (IBIT), and Fidelity Wise Origin Bitcoin Fund (FBTC). Earlier this week on Monday, March 11, MicroStrategy announced a successful acquisition of 12,000 Bitcoins worth around $821.7 million. 

As a result, MicroStrategy now holds around 205,000 Bitcoins worth over $6.9 billion. 

Also Read: Why is JPMorgan Worried About MicroStrategy Buying So Much Bitcoin?

MicroStrategy Adds More Bitcoins

Less than a week later, MicroStrategy’s founder and chairman Michael Saylor has announced that the company is offering convertible senior notes to facilitate the purchase of more Bitcoins. Notably, MicroStrategy will get between $515 million and $592.3 million, with an annual interest rate of 0.875 percent, and will expire by 2031. 

Furthermore, MicroStrategy will offer initial investors of the convertible senior notes an option to acquire more notes of up to $78.75 million, within the first thirteen days.

“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes,” the company noted.

Market Picture

The notable acquisition of Bitcoin from MicroStrategy has helped bolster the long-term success of the flagship coin. In the short term, MicroStrategy’s Bitcoin acquisition cannot prevent a sell-off from short-term traders seeking to take profits and distribute them to the altcoin market. 

From a technical standpoint, Bitcoin price is likely to find temporary solace at around $60,000 if the support level of around $67k fails to hold over the weekend.

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