MicroStrategy Raises “Free” USD 1B to Buy More Bitcoin As It Hits USD 1T Market Cap

Source: Adobe/monticellllo

One of the most bullish non-crypto companies, US-based software developer MicroStrategy, confirmed that its latest offering of convertible senior notes was sold out and it aims to spend over USD 1 billion on bitcoin (BTC) again. The market capitalization of the most popular cryptocurrency just surpassed USD 1 trillion today, per market data aggregators.

“The aggregate principal amount of the notes sold in the offering was USD 1.05bn,” the company said, adding that it estimates that the net proceeds from the sale of the notes will be approximately USD 1.03bn.

“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin,” the company confirmed.

As reported, this offering was different from the previous one last year because the company this time raised the money “for free” by selling 0% convertible senior notes due 2027.

The notes are convertible into cash, shares of MicroStrategy’s class A common stock, or a combination of cash and shares of MicroStrategy’s class A common stock, at MicroStrategy’selection.

At the end of January, the company owned approximately BTC 70,784 (currently USD 3.8bn). At today’s prices, for USD 1.03bn they could buy BTC 19,109.

At the time of writing (16:03 UTC), BTC trades at USD 53,876, hitting its new all-time high. The price is up by almost 5% in a day and 13% in a week. It rallied by 49% in a month. Meanwhile, as market data aggregators claim that BTC’s market capitalization surpassed USD 1 trillion today, some analysts say this number might be overstated.

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