HODL

2024

Rule

Million

Raise

<p><em><strong>Initial purchasers of the convertible senior notes will have the option to buy another $100 Million worth of notes. MicroStrategy intends to add bitcoins to its wallet that has 193,000 BTCs.</strong></em></p>
<p>MicroStrategy Incorporated (Nasdaq: MSTR) announced its proposal to raise around $700 Million via convertible senior notes to buy more bitcoins. The firm holds 193,000 BTC and is one of the largest business owners of the digital asset. Convertible senior notes are a type of debt security. MSTR fell around 3% to the $1291 mark after the announcement.</p>
<p>In a press release dated March 6, MicroStrategy announced that it increased the offering price by $100 Million. In its previous announcement, the firm priced the notes at $600 Million. The firm expects to raise around $684.3 Million in proceeds</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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   <p lang="en" dir="ltr">MicroStrategy Announces Proposed Private Offering of $600 Million of Convertible Senior Notes <a href="https://twitter.com/search?q=%24MSTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$MSTR</a> <a href="https://t.co/PEN5dxesIb" rel="noopener noreferrer nofollow">https://t.co/PEN5dxesIb</a></p>— Michael Saylor <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/26a1.png" alt="⚡" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@saylor) <a href="https://twitter.com/saylor/status/1764758591985058146?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">March 4, 2024</a>
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<p>“The notes will be sold in a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”),” said the company.</p>
<p>“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes.”</p>
<h2 class="wp-block-heading" id="strong-convertible-senior-notes-highlights-strong"><strong>Convertible Senior Notes – Highlights</strong></h2>
<p>The notes will pay an interest of 0.625% per annum and will mature on March 15, 2030, ‘unless earlier repurchased, redeemed or converted in accordance with their terms’. These securities are ‘unsecured, senior obligations of MicroStrategy’.</p>
<p>Interest will be paid semi-annually on March 15 and September 15, starting on September 15, 2024.</p>
<p>Per the company, the offering is expected to close on March 8th. Notably, the notes will be convertible into cash or MicroStrategy’s class A common stock or a combination of the two, with caveats.</p>
<p>“The conversion rate for the notes will initially be 0.6677 shares of MicroStrategy class A common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $1,497.68 per share.”</p>
<p>“The conversion rate will be subject to adjustment upon the occurrence of certain events.”</p>
<p>Initial purchasers of the notes will be granted an option to purchase ‘up to an additional $100 Million aggregate principal amount of the notes’ during the first 13 days after the date of issuance of the notes. MicroStrategy expects to raise around $782 Million if these initial purchasers fully exercise the option to buy the additional notes.</p>
<h2 class="wp-block-heading" id="strong-mstr-on-the-rise-amid-btc-bull-run-strong"><strong>MSTR on the rise amid BTC bull run</strong></h2>
<p>The MSTR price is up over 170% over the month. It has been hovering around the $1290 mark after it fell 3.3% on March 5th. The stock fell soon after the company announced the proposal to issue the convertible senior notes. The stock was rallying when BTC <a href="https://www.thecoinrepublic.com/2024/03/06/bitcoins-pulldown-from-69k-normalized-crypto-funding-rates/" target="_blank" rel="noopener noreferrer nofollow">marked</a> a new all-time-high (ATH) above $69K (recorded in November 2021). BTC is hovering around the $67 mark since it marked a new ATH.</p>
<p>MSTR surged 25.59% to the $1334 mark on March 4 in the after-market session. #1334 is its highest price since 2000. The stock was rallying when BTC marked a new ATH above $69K.<br>MicroStrategy co-founder and executive chairman Michael Saylor has been bullish on Bitcoin for a long time. He has made it clear that the company <a href="https://www.thecoinrepublic.com/2024/02/21/no-plan-to-sell-bitcoin-said-microstrategy-ceo-bloomberg/" target="_blank" rel="noopener noreferrer nofollow">intends</a> to HODL (hold on for dear life). In an event recently held in the US, Saylor elaborated on BTC’s benefits and its promising future. Saylor’s firm added 3000 bitcoins worth $155 Million in February.</p>

MicroStrategy Could Raise Over $700M Via Debt To Buy More BTC

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Thecoinrepublic.com

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