MicroStrategy looks to raise another $500 million via debt to buy more ‘apex property’
MicroStrategy is looking to raise another $500 million via a bond offering to continue growing its Bitcoin stash less than a week after completing a similar debt sale, according to a March 13 press release.
The latest senior convertible notes come with a March 15, 2031, maturity date and offer investors a semi-annual interest payment. The offering will include an option for an additional $75 million in notes, subject to market conditions and demand.
The notes can be converted to MicroStrategy class A common stock or cash starting Sept. 15, 2028.
Apex property
MicroStrategy recently completed a $700 million bond sale and used the proceeds to purchase 12,000 Bitcoin over the past weekend for $821 million. The offering was initially launched at $600 million but later raised to accommodate investor demand.
The acquisition brought its Bitcoin stash to a total of 205,000 BTC — worth nearly $15 billion as of press time.
MicroStrategy founder and executive chairman Michael Saylor is living up to his word as his firm continues to buy Bitcoin regardless of where the price stands.
Saylor recently called Bitcoin the “apex property” in an interview with Yahoo Finance and said that people who value fiat currencies will continue to remain “poor.”
He added that people who accumulate wealth tend to put their money in hard assets like real estate and gold. However, both of those pale in comparison to Bitcoin as a long-term store of value.
Saylor also reaffirmed his stance that Bitcoin is the exit plan in response to queries about whether he would sell Bitcoin at some point. He said it is foolish to exchange Bitcoin for something that is worse, stating:
“Whoever gets the most Bitcoin wins.”
Store of value
Saylor believes that Bitcoin is a more viable long-term store of value than high-value businesses, commercial real estate, and gold.
He also said that as more people begin to adopt Bitcoin, its $1 trillion market cap will increase 10x to 100x over the coming decade as investors draw from the world’s $900 trillion of wealth.
To put some perspective on the math, a $20 trillion market cap would mean that a single Bitcoin would be worth a little under $1 million.
Saylor also said that Bitcoin is on track to overtake gold in terms of market cap because it is a far superior asset and represents the digital transformation of capital.
As of press time, MicroStrategy stock (MSTR) was trading at $1,766 — up 10.85% over the day and down 0.18% after hours.
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Filed under: Bitcoin - @ March 13, 2024 10:56 pm