The controversial senior convertible notes MicroStrategy offered to investors for funding it had a massive turnout of interested investors. Despite critics predicting low turnouts since the fundraiser was for a volatile asset. The crypto community equally applauded the firm’s bold step into being a major institutional investor of the asset.
Before the fundraiser, the company had used hundreds of millions in its reserve to buy cryptocurrency before announcing its plans to buy even more. Some people suggest that this rapid and heavy buy is because of a predicted rise in the asset at some time to come.
MicroStrategy’s convertible note offering hits $650 million
The company had previously announced that it was planning to raise $400 million, but in no time, they upped the offering primarily due to the interested investors. MicroStrategy is a business analytics company that helps you predict and take a decision that can ultimately change your business game.
The company has just announced last week Monday that it plans to raise $400 million, and in just some days it reached and exceeded its target mark. When the fund reached $550 million, investors showed interest in buying $100 million more worth of the convertible notes to help raise enough for the crypto purchase. The firm explained that the total worth of the money raised was $650 million with the issuance of an option to purchase.
The firm has always been a supporter of the cryptocurrency mainly due to a reasonable belief that the blockchain will be the currency for the future. The business intelligence firm had earlier announced that most of its sheets have been converted into cryptocurrency and invested around $500 million then into it. The firm has a large crypto holding, and with its new plans of buying more, the firm could be one of the largest single source Bitcoin holders. MicroStrategy is not slowing down with its continued support of the world’s largest cryptocurrency.
MicroStrategy’s option to repay the investors
During its announcement of its fundraising plans, the firm had informed investors of the power of the senior convertible notes. It explained that the notes would expire in 5 years, and they could decide to buy back the notes with considerable interest or turn the note owners to shareholders in the company. MicroStrategy is well-known in the crypto space for its relentless investments in a bid to promote the adoption of the asset. The firm shows a high preference for premium digital assets like Bitcoin and has not expressed its stance on other assets.
Predictions have it that if the firm buys the BTC worth of the raised amount, the firm would have 36,500 BTC at the current market price of the cryptocurrency. There has been an unusual buying of cryptocurrencies by institutional investors which experts have predicted would lead to a massive surge in prices due to the expansion of the market with institutional funds. The entry of these class of buyers could force the banking sector to incorporate cryptocurrency as an option in their system.