Just a day after CEO Michael Saylor announced that his company MicroStrategy was proposing a private offer of $ 600 million in senior convertible notes to buy more bitcoin, he announced that the offer will actually be $ 900 million in notes, according to a statement .
The terms of this offer were also clarified than was proposed yesterday, as it was announced that there will be no interest and the principal value of the notes will not accrue. These notes will expire on February 15, 2027, unless they are repurchased earlier.
The statement states that MicroStrategy “estimates that the net proceeds from the sale of the notes will be approximately $ 879.3 million (or approximately $ 1.0 billion if initial buyers fully exercise their option to purchase additional notes), after deducting discounts. of initial buyers and estimated bid fees and expenses payable by MicroStrategy. ”
As announced in yesterday’s proposal, today’s statement reaffirmed that MicroStrategy will offer the buyer the option to purchase the notes “within a 13-day period, starting with and including the date on which the notes are first issued”, but today’s announcement clarified that this would only be the case for “up to an additional principal amount of $ 150 million of notes”. The offer is expected to be completed in two days, on February 19, 2021.
If there were any doubts about the intentions to use this money, following MicroStrategy’s continued purchase of bitcoins, as well as its proposal yesterday, this announcement stated that the company “intends to use the net proceeds from the sale of banknotes to acquire additional bitcoin . “
There are only 21 million bitcoins worldwide, always. This is just one company, taking on massive debt to buy more bitcoin once again, facing all of its competitors and other institutions in the process. If other big players want to keep up with MicroStrategy, they will not only have to accumulate large amounts of bitcoins, but also likely take on debt to do their best to recover.
MicroStrategy has set a new standard for companies when it comes to preserving shareholder value. And that is the Bitcoin standard.
