MicroStrategy to Put an Additional $650 Million From Its Notes Sale Into Bitcoin

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MicroStrategy (NASDAQ: MSTR), a business intelligence company, has exceeded its previous plans to offer $400 million in convertible notes, as reported in a previous article. The firm announced today that it has ended up raising $650 million through senior convertible notes offering and confirmed that the proceeds will be invested in Bitcoin (BTC).

Officially, the aggregate principal amount of notes sold was $650 million, which includes notes issuable under an option to purchase. The company refused to disclose the names of the participants in the sale but asserted that the notes were sold only to qualified institutional traders in a private offering.

The notes bear an interest rate of 0.75% per annum and are payable semi-annually in arrears on June 15th and December 15th of each year starting from 2021 till 2025, when the notes mature.

Owners of these notes can require MicroStrategy to repurchase the notes in case of a “fundamental change.” The repurchase price will be 100% of the principal cost of the notes.

MicroStrategy has confirmed that it will use the entire sale proceeds (approximately $635 million post-initial purchaser’s discounts and commissions) to invest in BTC in line with its recently updated Treasury Reserve Policy. If the company proceeds with this purchase, its total Bitcoin holdings will surpass $1 billion.

Key BTC Levels to Watch — December 11

Bitcoin suffered a mini flash crash at rollover time early on Friday. The benchmark cryptocurrency retested the $17,635 support, where it found some demand and rallied to the $18,000 area.

The prospects for a bullish recovery in Bitcoin continues to dissipate, as the cryptocurrency consistently records lower highs over the past week. BTC risks dropping to the unfilled CME gap at $17,000 if it doesn’t execute a decisive break above the $18,500 price mark soon.

Meanwhile, our key resistance levels are at $18,500, $18,800, and $19,000. While our key support levels are at $17,635, $17,300, and $17,000.

Total market capital: $530 billion

Bitcoin market capital: $333 billion

Bitcoin dominance: 62.8%

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