MicroStrategy Moves to Acquire More Bitcoin

MicroStrategy, the big dog in holding Bitcoin (BTC) among companies, is gearing up to raise an extra $600 million to buy even more. The company recently shared the news, saying they’re issuing senior convertible notes for this.

These notes are like IOUs that can turn into company shares later on. They’re called “senior” because if things go south and the company tanks, note-holders get the first take on whatever’s left.

MicroStrategy Eyes $600M Boost for Bitcoin Purchases

Led by Michael Saylor, MicroStrategy has been on a Bitcoin shopping spree since mid-2020. They’re sitting on a pile of 193,000 tokens, which adds up to over $13 billion at the current Bitcoin price.

These notes are good until March 15th, 2030, unless something else happens before then. And when the time comes, holders can trade them for cash, shares of MicroStrategy’s class A common stock, or a mix of both.

More About Bitcoin

MicroStrategy’s move to buy more Bitcoin comes as the cryptocurrency hit a new all-time high of $69,300 on Tuesday. This milestone comes after nearly two and a half years since the last peak in the bull market.

In November 2021, Bitcoin lost steam and entered what felt like a never-ending crypto winter. It wasn’t until the start of 2023 that things started looking up again. Since then, Bitcoin’s price has been on a steady climb, exploring new territories.

But this latest high was short-lived. On Tuesday morning, Bitcoin briefly soared to $69,210, as per Coin Metrics, before quickly retracting. By late afternoon, it had dropped by 8%, settling at $61,973.37.

Despite the recent surge, some investors are sounding the alarm. With Bitcoin already up by 45% this year, they worry that things might soon cool down, especially as unrealized profit margins hit extreme levels.

BTC’s climb to a new record is a significant accomplishment for the crypto industry. The industry was drowning in negative press and regulatory issues just a few months ago. The collapse of big platforms like FTX threw the market into deep uncertainty. By the end of 2022, bitcoin had plummeted 64% to its lowest point. However, it has been battling its way back ever since. And the market is beginning to see new opportunities. 


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