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MicroStrategy secures $800M from notes sale to fund its growing Bitcoin portfolio

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Virginia-based MicroStrategy Incorporated,

Virginia-based MicroStrategy Incorporated, well-known for embracing Bitcoin early on, has concluded a $800 million convertible note issuance.

Finalized on March 8, 2024, the sale is aimed to institutional purchasers that meet certain regulatory requirements. Furthermore, an extra $100 million is included in the $800 million from an option that purchasers fully exercised on March 6, 2024.

Plus, investors may choose between debt and equity via convertible notes, which have a semi-annual interest rate of 0.625% and mature on March 15, 2030.

Additionally, with a conversion rate of 0.6677 shares for every $1,000, an initial conversion price of around $1,497.68 per share would be expected.

After deducting costs, MicroStrategy plans to use the net profits, or around $782 million, to buy additional BTC, so increasing its sizeable stake in the crypto.

Through strategic investments in the crypto space and the utilization of its software development for blockchain applications, the company aims to maximize shareholder value.

This action shows the innovative way in which it integrates its technology ventures with its crypto investment strategy.

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