Micro-strategy, a leading US business intelligence and analytics company, has revealed plans to buy Bitcoin again. A company using artificial intelligence has increased its capabilities initial $500 million convertible bond offering up to $700 million, intending to operate the proceeds to purchase an equivalent amount of Bitcoin. This mass purchase of Bitcoin could cause the price of the cryptocurrency to rise, triggered by an escalate in demand amid price volatility.
MicroStrategy set to escalate Bitcoin holdings
In recent press releaseMicroStrategy announced the sale of its modern $700 million convertible bond offering, which it plans to operate to buy more Bitcoin and expand its already significant shares. The company disclosed the price of $700 million of debt bonds bearing an interest rate of 2.25% and maturing in 2032.
MicroStrategy revealed that convertible bonds will be sold privately only to qualified institutional investors pursuant to Rule 144A of the Securities Act of 1933. The intelligence firm also disclosed plans to grant the initial purchasers of the convertible senior notes an option to purchase up to an additional aggregate principal amount of $100 million of the notes on the 13th days from the date of issue.
Additionally, MicroStrategy emphasized in its press release that the company intends to allocate the proceeds from the sale of convertible senior notes to get more Bitcoins for general corporate purposes. The estimated net proceeds from the $700 million notes will be approximately $687.8 million after deducting necessary commissions, estimated company offering costs and discounts provided to the initial purchaser.
Additionally, net proceeds could generate as much as $786 million if initial purchasers purchase an additional $100 million of convertible notes.
Previously on April 29, MicroStrategy released first quarter 2024 financial results, announcing its total Bitcoin resources Which reached a staggering $214,400 worth $7.54 billion at an average purchase price of $35,180 per BTC. According to CoinGecko, among public companies, MicroStrategy ranks as the largest holder of Bitcoin in the world, with the net value or a market capitalization of approximately $26.53 billion as of June 14, 2024.
Despite being a witness, the company has not revealed any plans to stop the Bitcoin takeover spree solemn losses over the last few years. MicroStrategy’s forceful commitment to expands its Bitcoin holdings it has also allowed her to achieve remarkable milestones, currently having approx 1% of all Bitcoin in existence.
Bitcoin’s forceful accumulation phase may trigger modern highs
Bitcoin price is currently in a downtrend, fueled by selling pressure from Bitcoin miners who have done so sold over 1,200 BTC worth $79.20 million. At the time of writing the value of cryptocurrency has dropped to $66,145, down 4.70% over the past seven days, according to CoinMarketCap.
As sales pressure increases, MicroStrategy will hit the upcoming $700 million mark Bitcoin purchase during this correction it can serve as a potential catalyst price rebound. Moreover, MicroStrategy is not the only investor demanding more Bitcoin. Crypto analyst identified as ‘Jelle’ exposed on X (formerly Twitter) post that Bitcoin has been in a major re-accumulation range for the past three months.
He revealed that investors were it accumulates heavily a pioneering cryptocurrency using its latest capabilities price drop buy more BTC in anticipation of profit. According to Jelle, the total Bitcoin balance on exchanges has decreased by 200,000 over the last three months.
Featured image from Pixabay, chart from TradingView
