Gigachad CEO Michael Saylor announced on Twitter this morning that his company, software intelligence company MicroStrategy, has proposed a private offering of $ 600 million in senior convertible notes so it can “use the net proceeds from selling the notes to acquire additional bitcoins, “according to the press release that Saylor shared.
These notes would have an official maturity on February 27, 2027, with interest paid on February 15 and August 15 of each year from August 2021. The amount of interest paid will be calculated at the time of the offer pricing.
Anyone accepting this offer will receive a grant that allows them to purchase the notes “within a period of 13 days starting on, and including, the date the notes were first issued, up to an additional principal amount of $ 90 million. the notes, ”according to the statement.
Since MicoStrategy bought 0.1 percent of the total bitcoin stock last summer, it has been accumulating more and more. To say it was “all in” in a Bitcoin pattern would be an understatement, this being just the most recent speculative attack on the US dollar it intends to conclude. In December 2020, the company announced its intention to offer $ 650 million in convertible notes to buy bitcoin.
For those of you who don’t know what a speculative attack is, let me explain: since the US dollar and other fiat currencies have endless supplies with constantly decreasing purchasing power, the movement of power here is to assume dollar-based debt now for buy bitcoin, which has a finite supply with increasing purchasing power. Over time, the debt would be easy to pay off, not just with the investment money, but because the value of the fiat would naturally become much lower. Essentially, it is the practice of taking on cheap debt to buy a more difficult asset whose value you hope to increase.
Bitcoin thought leader Anil shared a great example of a historic speculative attack by Hugo Stinnes using gold against the German papiermark before the collapse of the Weimar Republic in 1923.
