MicroStrategy's 0% senior convertible bonds mean the company will not have to pay regular interest to bondholders, and this money will be used to DCA more Bitcoin.
MicroStrategy, the largest corporate holder of Bitcoin, is preparing to raise $1.75 billion to buy more Bitcoin through senior convertible bonds with a 0% interest rate.
According to the announcement on November 18, MicroStrategy said they "intend to use the net proceeds from this offering to acquire additional Bitcoin and for general corporate purposes."
The company's 0% senior convertible bonds mean they will not pay periodic interest to bondholders. Instead, these bonds are sold at a discount and will mature at par value if not converted before maturity, specifically in 2029 in the case of MicroStrategy.
These bonds are considered "senior" to common stock, meaning bondholders have priority in the event of the company's bankruptcy or liquidation.
If MicroStrategy spends the entire $1.75 billion to buy Bitcoin, they could purchase an additional 19,065 Bit at the current price.
Data from Bitcoin Treasuries shows the company currently holds 331,200 Bit, worth over $30.3 billion, after buying an additional $4.6 billion worth of Bit on November 18.
This year alone, MicroStrategy has purchased 142,050 Bit, worth around $12.8 billion at the current price.
The company's Bitcoin investment strategy led by Michael Saylor has yielded a 133% profit, with their average purchase price of $39,292 per Bit.
MicroStrategy's stock (MSTR) rose nearly 13%, reaching a record closing high of $374.8 on November 18, but fell 0.7% in after-hours trading, according to data from Google Finance.
Last month, MicroStrategy announced a plan to raise $42 billion over the next three years to buy more Bitcoin under its "21/21" strategy — including $21 billion from equity capital and $21 billion from fixed-income securities.
Currently, Bitcoin is trading at $91,653, just 2% below its ATH of $93,477 reached on November 13, according to data from CoinGecko.
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The article MicroStrategy raises $1.75 billion to buy more Bitcoin first appeared on CoinMoi.
