Microstrategy Set To Sell Of Debt Securities To Purchase Bitcoin

Buying large stakes in leading digital asset, Bitcoin has become a normal practice with high-value investments and firms worldwide. With the latest purchase being that of Tesla, Microstrategy and various other entities have been actively buying for the last few months. With Tesla’s recent buy, the digital asset saw a remarkable uptick in price on the way to create another all-time high.

But as things look now, Tesla is not the only firm interested in acquiring the digital asset as Microstrategy has reaffirmed their continued interest in buying up the bulk of the assets. A recent update by the company has shown that the company is set to complete its convertible senior notes worth $1.05 billion, pooled in Bitcoin.

Microstrategy looking to buy Bitcoin as its price drives up

Looking keenly at what a senior convertible note is, one can see that it is a kind of security that can be used to buy shares. The issuer of the note can also decide to buy back the senior notes. Even though the ones that belong to Microstrategy would expire come 2027, the company says it has the leeway to repurchase them by 2024. Companies have always used avenue like this to raise substantial money if it has already planned and executed several means to pay investors the premium they are to earn.

In the announcement where the company talked about the entire sell-off, it noted that things are looking like they will purchase more Bitcoin, even though they have not pointed out the exact amount they are planning to buy. Bitcoin is having a good time in the market recently as s the digital asset has just crossed the $55,000 mark in what would be described as another bull run to cement its place at the top of the digital asset list.

Microstrategy stock price skyrockets

This is not the first time that the investment firm would be doing such, with the last endeavor saw them sell $400 million of debt securities to buy close to $10 million worth of Bitcoin in the early weeks of January. The CEO of the firm, Michael Saylor, has continued to show his belief in the digital asset after years of staying against it. To back up his faith in the digital asset, the firm has continually stacked up a huge amount of the digital asset any chance they get.

As it stands now, the company presently owns close to 70,000 Bitcoin, and considering today’s price of the digital asset, they are worth about $3.7 billion. Since August last year, the purchase has been said to have worked out for the investment firm judging by the upward movement in its stock price that it started buying up the digital asset. Even though everything is going well, Citi recently gave a thumbs down to Microstrategys stock price as the analysts mentioned that the price is relying on Bitcoin. So they might fall when the digital asset does.