Michael Saylor’s institutional investment firm MicroStrategy has announced plans to increase its Bitcoin holdings amid a surge in the digital asset’s price.
MicroStrategy aims to raise $600 million for the acquisition. The company currently holds 193,000 bitcoins, worth about $13.19 billion.
MicroStrategy will use senior convertible notes.
In a recent statement, institutional investment firm MicroStrategy outlined its intention to fund additional Bitcoin through convertible senior notes.
“MicroStrategy intends to use the net proceeds from the sale of the Notes to acquire additional Bitcoin and for general corporate purposes.”
Convertible senior notes are a type of debt security that can later be converted into stock.
The $600 million worth of notes will be sold to what is reasonably believed to be qualified institutional buyers under U.S. securities laws.
“As an operating company, we can use our cash flow as well as proceeds from equity and debt financing to accumulate Bitcoin, which serves as our primary treasury asset.”
The statement also declares that these will be MicroStrategy’s unsecured senior notes and will bear interest two semi-annually each year beginning September 15, 2024.
Read more: 7 Best Cryptocurrency Exchanges in the US to Trade Bitcoin (BTC)
Recently, MicroStrategy has had a consistent pattern of acquiring more Bitcoin.
MicroStrategy continues to acquire Bitcoin
Meanwhile, on February 7, BeInCrypto reported that MicroStrategy had purchased an additional 850 Bitcoins for $37.2 million.
Additionally, the company took advantage of market volatility to secure an average purchase price that was lower than Bitcoin’s current value.
“Since the end of the third quarter, we have acquired 31,755 Bitcoins for $1.25 billion, or $39,411 per Bitcoin.”
This is consistent with Saylor’s commitment to Bitcoin under various market conditions, including bullish and bearish trends.
In June 2023, Saylor boldly stated that the next stage would involve a 10x increase for Bitcoin, then worth around $25,900.
Read more: Bitcoin price prediction for 2024/2025/2030
Based on this estimate, the potential price is around $250,900.
As MicroStrategy stands out in the Bitcoin industry, investors closely watch its activities as part of their market research.
Hackers took advantage of this to recently compromise Saylor’s X account, promoting fraudulent phishing links. As a result, his followers lost approximately $440,000.
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