by Eric Martin 
In a previous article, we talked about MicroStrategy looking to raise $400 million, through the sale of convertible senior notes, in order to buy Bitcoin BTC.
In the end, that is the astronomical figure of $650 million that the Nasdaq-listed company managed to raise by selling these notes in a private sale to institutional buyers.
0.750% convertible notes due 2025, the company statement said.
MicroStrategy Completes $650 Million Offering of 0.750% Convertible Senior Notes Due 2025 https://t.co/37y84GToPe
— Michael Saylor (@michael_saylor) December 11, 2020
MicroStrategy already has 40,824 BTC and will therefore invest the net proceeds of this sale of notes in the purchase of Bitcoins, or $634.9 million!
“MicroStrategy estimates that the net proceeds from the sale of the notes will be approximately $634.9 million, after deducting the initial purchaser’s discounts and commissions and estimated offering expenses payable by MicroStrategy.
MicroStrategy intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its Treasury Reserve Policy pending identification of working capital needs and other general corporate purposes.”
The company, which has become famous for its Bitcoin purchases, is therefore expected to announce shortly how much more BTC it will have in its secure digital vaults.
Its CEO Michael Saylor is clearly betting on the rise in the Bitcoin price in the future, an operation that should generate significant profits in the months to come if the price continues to rise amid positive news.
Analysts like Glassnode CTO Rafael Schultze-Kraft estimate a BTC price that could reach 100 to $250,000 when it next peaks.
1/ Where are we in the #Bitcoin market cycle?
A look at some of the most important on-chain market indicators.
TLDR: Insanely bullish, most metrics are far from the top. If things develop anything like 2017, we could see more than 10x $BTC from here.
A THREAD ? pic.twitter.com/d1jU0h5fxA
— Rafael Schultze-Kraft (@n3ocortex) December 8, 2020
MicroStrategy announcements of BTC purchases will certainly push other companies to follow suit, with Guggenheim investment fund claiming to buy Bitcoin for $500 million.
US insurer MassMutual just bought Bitcoin for $100 million revealed the Wall Street Journal.
Purchases of BTC tokens that are done in OTC (over the counter) and not on crypto exchanges like Kraken in order not to impact the Bitcoin price.
A bitcoin price currently around 19,337 dollars.
