Microstrategy issued another convertible bond in order to use the proceeds to acquire Bitcoin.
MicroStrategy Announces Pricing of Offering of Convertible Senior NotesTYSONS CORNER, Va., March 6, 2024 — MicroStrategy® Incorporated (Nasdaq: MSTR) (“MicroStrategy”) today announced the pricing of its offering of $700 million aggregate principal amount of 0.625% convertible senior notes due 2030 (the “notes”). The notes will be sold in a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). MicroStrategy also granted to the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $100 million aggregate principal amount of the notes. The offering was upsized from the previously announced offering of $600 million aggregate principal amount of notes. The offering is expected to close on March 8, 2024, subject to satisfaction of customary closing conditions.
The notes will be unsecured, senior obligations of MicroStrategy, and will bear interest at a rate of 0.625% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2024. The notes will mature on March 15, 2030, unless earlier repurchased, redeemed or converted in accordance with their terms. Subject to certain conditions, on or after March 22, 2027, MicroStrategy may redeem for cash all or any portion of the notes at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, if the last reported sale price of MicroStrategy class A common stock has been at least 130% of the conversion price then in effect for a specified period of time ending on the trading day immediately before the date the notice of redemption is sent. If MicroStrategy redeems fewer than all the outstanding notes, at least $90 million aggregate principal amount of notes must be outstanding and not subject to redemption as of the relevant redemption notice date.
They issued a 6-year convertible note paying 62.5 bps of yield: that's a steal!
With that, they think of buying approximately 680 millions of Bitcoins.
The conversion as wel,l it will be quite punishing:
The conversion rate for the notes will initially be 0.6677 shares of MicroStrategy class A common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $1,497.68 per share. This represents a premium of approximately 42.5% over the last reported sale price of $1,051.01 per share of MicroStrategy class A common stock on the Nasdaq Global Select Market on March 5, 2024. The conversion rate will be subject to adjustment upon the occurrence of certain events.
Good discounts for current MSTR holders.
With the rate of buying from micro strategy ,ETF companies and other big players it would be very wrong for us retail investors to sell our bitcoin for any reason, if we must sell it should be at least a little cause with the funds at their disposal they could easily buy off all the bitcoin and they might not have any intentions to sell and moreover they are more equipped than us.
I guess all this buying and investing in bitcoin to pump price has been to shake some weak hands to sell to get profits, although no one can hold forever but at least try to have some asset left in bitcoin, bitcoin still has a very bright future and we shoudl not fall for FOMO cause of the bull run to sell our holdings. its all over the Internet and social media many persons even old investors has already set their sell prices and I think this is exactly what this big companies want, to take the bitcoin out from the hands of retail investors, and from the way I see it soon an average earner would find it very difficult to accumulate bitcoin in the next 2 years or so, making it only accessible to big players and high income earners or rich persons, the idea is to hold as long as possible, if possible give to our children as inheritance, bitcoin is really heading somewhere and that place is not the FOMO of 100k or even up to 200k, its an asset that has more potential than that.
#KEEP ACCUMULATING #KEEP HOLDING #SELF COUSTODY
Thanks for the timely update.
I am becoming slow on this.
I will later update the spreadsheet with this last buy.
Also, good to note that bitcoin is not dumping on the announcement like it is used to do.
After a while some of these dumpers might come to realize that if they dump their coins, they might not be able to buy them back... they gotta wait until their supplier is ready, willing and able to sell them coinz.. and gosh.. if the BTC price might bounce up $10k to $28k, there might not be a willingness to sell coins at these here prices, but yeah when we get into the $80ks, then maybe the willingness to sell coins
might come back.
Maybe.
If the willingness to sell coins does not come back in the $80ks, then perhaps it might come back in the $120ks to $130ks..
perhaps?
Perhaps?
There surely are going to be sellers between now $53.3k-ish until into the $130ks, but then are there going to be more sellers than buyers? and there could be some folks who end up regretting selling too many coins too soon.
To me I see a scheme with all this buying from ETFs and big companies, I just feel that want to take bitcoin off retail investors and own at least up to 50% of the total supply or more and if that happens, they can decide not to sell any of their and if selling would occur it would be amongst themselves.
The truth is I don't think the days of regrets in bitcoin are over, like the days when early investors that bought at an average of 500$- less than 200$ sold off after seeing maybe 5000$-50000k in bitcoin, that regret would still come back if they did not buy back cause when these big companies get what they want bitcoin would be racing above 500k or even up to a million and most of them can buy back.
My idea of holding has changed totally to me cause, I don't wanna lose to this big companies, at least it good you have some bitcoin up to 30 or 40 minimum before retirement.
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