MicroStrategy set to purchase more Bitcoin as BTC spikes above $50K.

Spread the love

MicroStrategy, a publicly traded firm, plans to sell $600 million of convertible senior notes in a private offering to eligible institutional purchasers. The company intended to use the nett proceeds from the selling of the notes to buy additional bitcoins. Initial notes holders will now be able to buy an additional $90 million worth of notes that MicroStrategy will use to purchase more BTCs.

The news had a positive effect on the BTC market, as the crypto price hit the new ATH, shortly after Michael Saylor confirmed the news on Twitter.

On 16 February, Bitcoin traded briefly at $50,350.06 at about 12:30 PM UTC. However, the price of Bitcoin was down by 0.2 percent in the last hour and now, according to data from CoinGecko, it traded at $49,401.

As far as the details are concerned, the official release published on 16 February claimed that MicroStrategy will specify those terms of the notes, such as the interest rate, the conversion rate, the conversion price at the time of the offer price. It went on to state that around 20 February 2024, MicroStrategy could redeem a portion of the notes or cash.

RECOMMENDED READ:  Uniswap, Polkadot, Synthetix  Price Movement Analysis for 4th February 2021

Notes will be convertible into cash or shares of the stock of MicroStrategy. They can also be transformed into a mixture of cash and shares of MicroStrategy’s “Class A Common Stock” at MicroStrategy’s election.

As of 2 February, MicroStrategy acquired an additional 295 BTC worth approximately $10 million. This followed the previous acquisition of BTC by the company on 22 January, which was also worth $10 million.

Data from Bitcointreasuries confirms that the business intelligence firm owns 71,079 BTC, making the company the biggest purchaser of the asset to date.

 162 Interactions,  2 today

READ ALSO:
MicroStrategy buys extra 328 bitcoins worth $15m.

Business analytics company MicroStrategy has acquired an extra 328 bitcoins for nearly $15 million. This will be the first acquisition Read more

MicroStrategy to invest $900M from convertible senior notes into Bitcoin

If the purchase goes as expected, the business intelligence company will retain more than $3.5 billion in Bitcoin as a Read more

Bitcoin vs gold, why MicroStrategy says Investors want Bitcoin

Gold and Bitcoin proponents are likely to keep debating with each other as both gold enthusiasts and bitcoin maximalists adhere Read more

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact Us

%d bloggers like this: