HomeNEWSMicroStrategy to buy more Bitcoin with $500 million stock sale

MicroStrategy to buy more Bitcoin with $500 million stock sale


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Popular business intelligence firm, Microstrategy has announced its plan to invest $500 million stock sale on additional Bitcoins. In a Thursday blog post, Microstrategy said the move is in line with its commitment to adopt the crypto king as a treasury reserve asset.

According to MicroStrategy, the $500 million is to be offered in the form of convertible senior notes and due in 2032. The notes will be insecure and carry an interest that’s payable semi-annually in arrears on June 15 and December 15 of each year. Meanwhile, the co-founder of MicroStrategy, Michael Saylor expects the notes to mature by June 15, 2032 unless they are repurchased, redeemed, or converted at a time earlier than the said date.

More so, MicroStrategy plans to grant initial purchasers the opportunity to buy an additional $75 million in aggregate principal amount of the notes.

Over the years, MicroStrategy has proven to be one of the largest institutional holders of Bitcoin. The company sees the largest crypto by market cap as a long-term investment and store of value. Also, in a recent interview, Saylor, popularly regarded as a Bitcoin maximalist highlighted the coin’s capacity to even outperform major traditional assets and serve as a hedge against rising inflation.

MicroStrategy holds up to 214,400 Bitcoins As of May 2024

Being one of the major players in the crypto market, MicroStrategy holds up to 214,400 Bitcoins as of May 2024 with a total cost of $7.6 billion. MicroStrategy acquired all the tokens over the past few years. For instance, in December 2023, it purchased 14,620 BTCs for a total cost of $615 million. The firm purchased the coins at an average price of $42,110 per BTC.

Similarly, MicroStrategy also acquired $370 million worth of Bitcoins in June 2023 at an average price of $28,136 per BTC.

Meanwhile, Michael Saylor is still facing a $25 million tax fraud charges filed by the Attorney General of Columbia. The authorities accused Saylor of lying about its place of residence to evade taxes. Nonetheless, he has agreed to pay $40 million to settle the lawsuit.

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Dare Ibitoye
Dare Ibitoye
Over the years, Dare has been a committed reporter in the field of cryptocurrencies. He is also interested in researching about the innovative projects within the blockchain space. During his spare time, Dare loves to listen to music and read about technological trends in the contemporary world

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