MicroStrategy continues to show interest in Bitcoin (BTC). The company announced that they are searching for $400 million in order to increase their Bitcoin holdings. In order to gather these funds, the firm informed they intend to offer convertible senior notes in a private offering to institutional buyers.
MicroStrategy Wants to Increase its Bitcoin Exposure
MicroStrategy announced in a press release on December 7 that they want to increase their Bitcoin holdings. In order to do so, they intend to offer $400 million of convertible senior notes due 2025.
The private offering is expected to take place for institutional investors in reliance on Rule 144A under the Securities Act of 1993. According to the official announcement, the notes will be unsecured and will bear interest payable semi-annually between June 15 and December 15 each year.
As per the press release, MicroStrategy wants to invest the proceeds from the sale of the notes in Bitcoin. This is not the first time that the company shows interest in Bitcoin. MicroStrategy was one of the firms that acquired BTC in recent months.
The press release reads as follows:
“MicroStrategy intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its Treasury Reserve Policy pending the identification of working capital needs and other general corporate purposes.”
MicroStrategy has already acquired 40,824 BTC. This represents almost 0.20% of all the BTC that would ever be issued. Nevertheless, MicroStrategy wants to continue adding more BTC to their reserves.
This company could be just one of the first to invest large sums of money in the cryptocurrency market. In the future, other firms could follow MicroStrategy decision and add digital assets to their balance sheet. This shows institutional investors are paying close attention to the crypto market.
G7 Wants to Regulate Cryptocurrencies
It is worth mentioning that G7 finance officials are thinking of regulating digital currencies. Finance Ministers and Central Bankers from the Group of Seven see a strong need to regulate the crypto market.
The Finance Minister of Germany, Olaf Scholz, explained that they “must do everything possible to make sure the currency monopoly remains in the hands of the state.” Moreover, the joint statement released by the group explains that there is strong support across G7 to regulate the entire market. Another issue discussed was related to stablecoins and the role they are starting to play in the economy.