As a seasoned crypto investor with a keen interest in MicroStrategy’s Bitcoin strategy, I find this latest move by the company both intriguing and promising. With over 1% of all Bitcoins already in its treasury reserve, MicroStrategy is clearly bullish on the world’s leading cryptocurrency. This new private stock sale will allow them to add even more BTC to their holdings, further solidifying their commitment to this digital asset.
As a crypto investor, I’d put it this way: MicroStrategy is planning to sell $500 million worth of private stocks to boost its bitcoin holdings. With over 1% of the total bitcoins in circulation currently under our control, which translates to approximately 214,400 coins, we see a significant opportunity to expand our position. By doing so, we aim to make bitcoin an essential part of our treasury reserve strategy.
MicroStrategy announced in a press release to investors that they plan to utilize the funds obtained from selling the notes for two main purposes: purchasing more bitcoin and addressing various corporate expenses.
Investors who participate in the sale will be given senior notes, which are scheduled to reach maturity in the year 2032. MicroStrategy has the option to buy back these notes with cash or exchange them for its Class A common stock before then, subject to specific conditions. The provision specifies that on or after June 20, 2029, MicroStrategy may redeem all or a portion of the notes in cash. Prior to that date, investors will receive semi-annual interest payments on June 15 and December 15 each year. The initial interest payments are due on December 15, 2024.
As a researcher, I would describe it this way: I’m looking at a sale where only professional investors, such as financial institutions, are eligible to participate. These investments fall under Section 144A of the Securities Act of 1993, meaning they won’t be open to the public and thus will not be registered with the Securities and Exchange Commission (SEC).
As a crypto investor, I’d express it this way: I was among the lucky ones who got the opportunity to buy an extra $75 million worth of senior due notes within two weeks of the sale being activated. However, potential investors like myself were kept in the dark about the interest rate and initial conversion price until the sale officially began.
As an analyst, I would interpret this statement as follows: The reference price for determining the initial conversion price of MicroStrategy’s notes will be based on the average price of their Class A common stock during the specific time frame from 9:30 AM to 4:00 PM Eastern Daylight Time on the pricing date.
Image by Bastian Riccardi from Pixabay
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2024-06-13 17:14