2024

Bitcoin

Strong

April

<a href="https://bitcoinist.com/microstrategy-shifts-focus-to-bitcoin-development/" target="_blank" rel="noopener ">MicroStrategy</a>, a leading American business intelligence and analytics company, has unveiled plans to buy Bitcoin once again. The AI-powered firm upsized its <a href="https://bitcoinist.com/microstrategy-sell-stocks-buy-500-m-bitcoin/" target="_blank" rel="noopener ">initial $500 million offerings on convertible notes</a> to $700 million, intending to use the proceeds to acquire an equivalent amount of Bitcoin. This massive Bitcoin purchase could see the price of the cryptocurrency rising, triggered by the boost in demand amidst price volatility.&nbsp; 
<h2 id="b-microstrategy-set-to-increase-bitcoin-holdings-b">MicroStrategy Set To Increase Bitcoin Holdings&nbsp;</h2> 
In a recent <a href="https://www.microstrategy.com/press/microstrategy-announces-pricing-of-offering-of-convertible-senior-notes_06-14-2024" target="_blank" rel="noopener nofollow">press release</a>, MicroStrategy announced the sales of its new $700 million convertible notes offerings, which it plans to use to buy more Bitcoin and expand its already <a href="https://bitcoinist.com/microstrategy-expands-bitcoin-purchases-3000-btc/" target="_blank" rel="noopener ">substantial holdings</a>. The company disclosed the pricing of the $700 million debt notes, featuring a 2.25% interest rate and a maturity date in 2032. 
MicroStrategy has revealed that the <a href="https://www.newsbtc.com/news/microstrategy-500-million-bitcoin/" target="_blank" rel="noopener nofollow">convertible senior notes</a> will be sold privately to exclusively qualified institutional investors, following Rule 144A under the amended Securities Act of 1933. The business intelligence firm has also disclosed plans to grant initial purchasers of the convertible senior notes the option to buy up to an extra $100 million aggregate principal amount of notes within 13 days from the issuance date.&nbsp; 
Additionally, MicroStrategy highlighted in its press release that the company intends to use the proceeds from the sales of the convertible senior notes to <a href="https://bitcoinist.com/peter-schiff-questions-microstrategys-bitcoin-buys/" target="_blank" rel="noopener ">acquire more Bitcoin</a> for general corporate purposes. The estimated net proceeds from the $700 million in debt notes will be approximately $687.8 million after deducting necessary commissions, the company’s estimated offerings expenses and the initial purchaser’s discounts. 
Additionally, the net proceeds could generate as high as $786 million if the initial purchasers buy the extra $100 million convertible notes.&nbsp; 
Earlier on April 29, MicroStrategy <a href="https://www.microstrategy.com/press/microstrategy-announces-first-quarter-2024-financial-results-now-holds-214-400-btc_04-29-2024" target="_blank" rel="noopener nofollow">released</a> its first quarter 2024 financial results, announcing its <a href="https://www.newsbtc.com/news/microstrategy-bitcoin-holdings/" target="_blank" rel="noopener nofollow">total Bitcoin holdings </a>which have reached a staggering $214,400 valued at $7.54 billion at an average purchase price of $35,180 per BTC. According to CoinGecko, among public companies, MicroStrategy holds the rank as the world’s largest Bitcoin holder, with a <a href="https://stockanalysis.com/stocks/mstr/market-cap/#" target="_blank" rel="noopener nofollow">net worth</a> or market capitalization of approximately $26.53 billion as of June 14, 2024.&nbsp; 
<img loading="lazy" decoding="async" class="size-full" src="https://www.tradingview.com/x/YQbWE68E/" width="1835" height="883"> 
The company has revealed no plans to halt its Bitcoin acquisition spree, despite witnessing <a href="https://bitcoinist.com/microstrategy-btc-bet-loss-grows-to-1-5b/" target="_blank" rel="noopener ">major losses</a> over the past few years. MicroStrategy’s strong commitment to <a href="https://bitcoinist.com/microstrategy-bitcoin-end-game-saylor-plan/" target="_blank" rel="noopener ">expanding its Bitcoin holdings</a> has also allowed it to achieve remarkable milestones, now owning approximately <a href="https://bitcoinist.com/microstrategy-1-of-all-bitcoin/" target="_blank" rel="noopener ">1% of all Bitcoin in existence</a>.&nbsp;&nbsp; 
<h2 id="b-bitcoin-s-strong-accumulation-phase-could-trigger-new-highs-b">Bitcoin’s Strong Accumulation Phase Could Trigger New Highs</h2> 
<a href="https://www.newsbtc.com/analysis/btc/bitcoin-price-rejects-70k-2/" target="_blank" rel="noopener nofollow">Bitcoin’s price</a> is currently on a downward trend, fueled by selling pressures from Bitcoin miners who have <a href="https://x.com/ali_charts/status/1801792994376618310?s=46" target="_blank" rel="noopener nofollow">sold</a> more than 1,200 BTC, valued at $79.20 million. As of writing, the <a href="https://www.newsbtc.com/news/bitcoin-price-crashes-below-67000-key-reasons/" target="_blank" rel="noopener nofollow">cryptocurrency’s value has fallen</a> to $66,145 reflecting a 4.70% decrease over the past seven days, according to CoinMarketCap.&nbsp; 
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-305686" src="https://bitcoinist.com/wp-content/uploads/2024/06/A_28bb8a.png?resize=602%2C341" alt="" width="602" height="341" data-recalc-dims="1"> 
With selling pressures increasing, MicroStrategy’s upcoming $700 million <a href="https://bitcoinist.com/microstrategy-bitcoin-bet-btc/" target="_blank" rel="noopener ">Bitcoin purchase</a> during this correction could serve as a catalyst for a potential <a href="https://www.newsbtc.com/news/bitcoin-price-resurgence-70k/" target="_blank" rel="noopener nofollow">price rebound</a>. Moreover, MicroStrategy has not been the only investor demanding more Bitcoin. A crypto analyst identified as ‘Jelle’ revealed in an X (formerly Twitter) <a href="https://x.com/cryptojellenl/status/1801490964524966277?s=46" target="_blank" rel="noopener nofollow">post</a> that Bitcoin has been in a major re-accumulation range for the past three months.&nbsp; 
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-305687" src="https://bitcoinist.com/wp-content/uploads/2024/06/A_707936.png?resize=586%2C246" alt="" width="586" height="246" data-recalc-dims="1"> 
He disclosed that investors have been <a href="https://www.newsbtc.com/news/will-a-massive-bitcoin-accumulation-trend-be-enough-to-propel-it-further/" target="_blank" rel="noopener nofollow">heavily accumulating </a>the pioneer cryptocurrency, taking advantage of its recent <a href="https://www.newsbtc.com/news/bitcoin-price-falters-68k/" target="_blank" rel="noopener nofollow">price drop</a> to purchase more BTC in anticipation of a gain. According to Jelle, the total balance of Bitcoin on exchanges has dropped by 200,000 over the past three months.&nbsp; 
Featured image from Pixabay, chart from TradingView

Bitcoin Surge Incoming? MicroStrategy Prepares To Buy $700 Million Worth Of BTC

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