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MicroStrategy (Nasdaq: MSTR) announced plans to raise funds through a private offering of $500 million of convertible senior notes. The <a href="https://news.todayq.com/microstrategy-jumps-9-is-this-a-crypto-stocks-comeback-time/" rel="noopener noreferrer nofollow">Bitcoin holding company</a> is looking to add more BTCs and for other corporate purposes. The notes will mature in 2032. MicroStrategy makes fresh Bitcoin move 
According to the release, The private offering targets qualified institutional buyers under Rule 144A of the Securities Act of 1933. It added that the initial purchasers might acquire an extra $75 million in notes within a 13 day window post issuance.&nbsp;
It mentioned that these notes will be unsecured, accruing interest payable semi-annually on June 15 and December 15. However, the notes are set to mature on June 15, 2032, but there are provisions for early redemption. This also includes repurchase, or conversion into cash or shares of MicroStrategy’s class A common stock.&nbsp;
MicroStrategy can redeem the notes partially or fully after June 20, 2029. It is required to maintain a minimum of $75 million in outstanding notes if not all are redeemed.
It is being highlighted that the holders can also demand a repurchase on June 15, 2029. The conversion terms will be made at pricing. This includes the interest rate and initial conversion rate.
It is important to note that MicroStrategy has stated that the proceeds from this issuance will be kept aside for acquiring additional Bitcoin and other needs. This move will eventually play a crucial role in pushing Bitcoin prices up in the future. Why is this a big news? 
The announcement comes at a crucial point when BTC is fighting hard to regain the $71K price level first and then might try to hit the all time high (ATH) next.
MicroStrategy owns 214,400 bitcoins as of May 1, 2024. It stated that the average purchase price was $35,158.00 per Bitcoin with a total cost of $7.538 billion.
Bitcoin is riding high on the approval of Exchange-Traded Fund (ETF) from the US Securities and Exchange Commission (SEC). BTC price is up by 60% on YTD, while it went on to hit new ATH in March.
BTC is trading at an average price of $67,394, at the press time. The biggest crypto has suffered a decline of 5% in the last 7 days. Its 24 hour trading volume is up by 31% to stand at $36 billion.

Bitcoin bull MicroStrategy launches $500M note offering

Todayq News

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