MicroStrategy Will Launch Deposits to Increase Bitcoin Ownership

Liputan6.com, Jakarta – MicroStrategy Inc announced for the second time in less than two weeks it would sell convertible deposits to buy more Bitcoin as the cryptocurrency soared to record highs.

The largest publicly traded Bitcoin holding company plans to offer USD 500 million worth of convertible and unsecured senior bonds maturing in 2031, according to a statement on Wednesday, March 13, 2024.

Reporting from Yahoo FinanceFriday (15/3/2024), a company based in Tysons Corner, Virginia bought Bitcoin worth USD 821 million or the equivalent of IDR 12.7 trillion (assuming an exchange rate of IDR 15,568 per US dollar) with the proceeds from the sale of convertible senior debt securities which matures in 2030 and closes on March 8.

MicroStrategy chairman and co-founder Michael Saylor began buying Bitcoin in 2020 as an inflation hedge and alternative to holding cash.

MicroStrategy has spent more than USD 1 billion or around IDR 15.5 trillion on Bitcoin in the first three months of 2024, more than half of last year's total purchases. The cryptocurrency is up more than 675% since Saylor started buying.

Coinbase Global Inc, the largest US crypto exchange also said on Tuesday it plans to offer USD 1 billion in convertible senior bonds to repay existing debt and for general corporate purposes.

Crypto companies are taking advantage of the surge in the value of their stock prices amidst the crypto bull market. MicroStrategy has cryptocurrency worth more than USD 14 billion or the equivalent of IDR 217.9 trillion.

Bitcoin has risen about 70% so far this year thanks to the launch of the Bitcoin Spot ETF. MicroStrategy shares have risen 180%, while Coinbase has rallied 45% in the same period.

MicroStrategy plans to offer initial buyers of the latest series of debt securities the option to purchase up to an additional USD 75 million or the equivalent of IDR 1.1 trillion. The company, which said the sale was subject to change, said the funds raised could also be used for general corporate purposes.

Disclaimer: Every investment decision is in the hands of the reader. Study and analyze before buying and selling Crypto. Liputan6.com is not responsible for profits and losses arising from investment decisions.