Just one day after CEO Michael Saylor announced that his company MicroStrategy would propose a private offer of $ 600 million convertible senior notes to buy more bitcoin, he announced that the offer would actually be $ 900 million worth of notes, according to an release.
The terms surrounding this offer were also further clarified from what was proposed yesterday, as it was announced that it would not bear interest, and that the principal amount of the notes would not be compared. These notes will expire on February 15, 2027, unless repurchased earlier.
The release states that MicroStrategy “estimates that the net proceeds from the sale of the notes will amount to approximately $ 879.3 million (or approximately $ 1.0 billion if the initial buyers make full use of their option to purchase additional notes), after the rebates were deducted from the initial buyers and commissions and estimated presentation expenses payable by MicroStrategy. ”
As announced in yesterday’s proposal, today’s release reaffirmed that MicroStrategy will offer the buyer the option to purchase the notes “within a period of 13 days from the date the notes are first issued”, but in today’s announcement it is explained that this would only be the case for ‘up to an additional total amount of $ 150 million of the notes.’ The offer is expected to close in two days, on 19 February 2021.
If there is any doubt about the intentions for the use of this money, following MicroStrategy’s ongoing bitcoin purchase as well as its proposal yesterday, this announcement said that the company ‘intends to return the net proceeds from the sale of the notes to use additional bitcoin. ”
There are only 21 million bitcoin there for the whole world. This is just one company incurring huge debts to buy more bitcoin again, which is ahead of all its competitors and other institutions in the process. If other big players want to keep up with MicroStrategy, they will not only also have to accumulate large amounts of bitcoin, but will also likely have to take on debt to do their best to catch up.
MicroStrategy has set a new standard for companies in maintaining shareholder value. And that’s the Bitcoin standard.
