MicroStrategy announced in a press release on February 16 that it intends to launch a private offering of $600 million convertible senior notes for qualified institutional investors. The company said that the notes will be convertible into cash, or shares of the company’s class A common stock or even the two. Most importantly, MicroStrategy intends to “use the net proceeds from the sale of the notes to acquire additional bitcoins.”
MicroStrategy’s Investment in Bitcoin Had Paid Off
Bitcoin is gaining more traction with the ongoing investments of large traditional institutions. Lately, more companies are beginning to embrace cryptocurrency and are looking for ways to not miss out on the frenzy. But MicroStrategy is ahead of the curve, being one of the early firms to acknowledge BTC as a store of value and reliable investment.
This is the second time the public company tried to raise funds to pump its BTC bags. Last December, the Saylor-led company had filed a $400-million senior convertible note offering.
For many months, the firm has shown its support for bitcoin and other cryptocurrencies. It has also been pitching Bitcoin to 1,400 public companies.
Since 2020, the company started investing heavily in the largest digital currency, cleverly buying almost every substantial dip. In February, the firm acquired 295 bitcoin, worth about $10 million, to their existing stash. Right now, the firm is one of the largest holders of bitcoin in the world with more than 71,079 Bitcoin, worth over $3.4 billion, in their custody.
Interest in Bitcoin Will Drive Price Higher
Now that other companies like Tesla and Square have made a similar move to invest in Bitcoin, the asset has experienced an explosive surge. The aggregated investments of MicroStrategy and other companies in Bitcoin are one of the most powerful driving forces which propelled BTC to hit an ATH of $50,700. Thanks to these large companies and institutional investors, more credence has been given to the cryptocurrency and the space in general.
Microstrategy is not the only company to have invested in crypto; the interest of other traditional firms has no doubt added more weight to the value of bitcoin. Apple Pay also recently provided Bitcoin as a payment option for its users. To achieve this purpose, the app incorporated a top payment platform, BitPay.
As of now, analysts have predicted a general bullish trend for bitcoin in the near-term, although the new rise was quite shortlived.