The American listed company, the Bitcoin holding giant MicroStrategy, announced yesterday (13) that it plans to issue $500 million worth of convertible senior notes to compliant institutional investors and will use the proceeds to continue to increase its Bitcoin holdings, but its stock price fell instead of rising.
Continuing to Increase Bitcoin Holdings
MSTR Falls Nearly 8% at Opening
MicroStrategy’s Bitcoin Unrealized Gains Reach $6.73 Billion USD
The American listed company with the largest Bitcoin holdings, MicroStrategy, announced late yesterday that it plans to issue $500 million worth of convertible senior notes that will mature in 2032 to qualified institutional investors through a private placement.
Continuing to Increase Bitcoin Holdings
MicroStrategy explained in the announcement that the convertible senior notes to be issued this time will meet the following basic conditions:
They belong to MicroStrategy’s unsecured senior debt, which will pay interest to investors and will settle semi-annually starting from December 15, 2024, on June 15 and December 15 each year.
After June 20, 2029, MicroStrategy can redeem part or all of the bonds with cash.
Bondholders have the right to demand that MicroStrategy repurchase all or part of the bonds with cash on June 15, 2029.
The interest rate, initial conversion rate, and other terms of the bonds will be determined at the time of issuance.
However, more importantly, MicroStrategy stated that the proceeds from this bond issuance will continue to be used to purchase more Bitcoin.
MSTR Falls Nearly 8% at Opening
Since MicroStrategy announced continued investment in Bitcoin in August 2020, its stock (MSTR) has entered a mode of skyrocketing, and with the arrival of the Bitcoin bull market, after announcing multiple increases in holdings this year, the stock price has often been stimulated.
However, this time, although MSTR rose 3.1% in pre-market trading in the US stock market, it then fell all the way, closing at $1483.88, down 7.47%. Although Bitcoin’s performance was also poor last night, MSTR’s decline was even deeper, and the repeated actions of increasing holdings seem to be unable to support the stock price anymore.
Bitcoin surged to $70,000 after the CPI was announced the night before last, but then continued to fall. At midnight today (14), it hit a low of $66,258, with the current price at $66,630, a decrease of 2.4% in the past 24 hours.
MicroStrategy’s Bitcoin Unrealized Gains Reach $6.73 Billion USD
Although Bitcoin is still fluctuating, according to the latest data from bitcointreasuries, MicroStrategy’s current Bitcoin holdings are 214,400 BTC, with a purchase cost of approximately $7.543 billion. The current total value is $14.276 billion, with an unrealized gain of $6.73 billion.
MicroStrategy Bitcoin Holdings
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