MicroStrategy increases note sales to $2.6B for Bitcoin purchases
MicroStrategy upsizes its note sale to $2.6 billion to fund Bitcoin purchases, boosting confidence in BTC’s price reaching the $100,000 milestone.
MicroStrategy, the largest corporate holder of Bitcoin, announced it had increased its upcoming note sale to $2.6 billion, signaling bullish expectations for Bitcoin’s potential to surpass the $100,000 mark.
MicroStrategy, the largest corporate Bitcoin holder, is set to raise $2.6 billion from senior convertible notes at a 0% interest rate to buy more BTC.
The note sale was upsized from the previously announced offering of $1.75 billion aggregate principal amount of notes, the firm shared in a Nov. 20 announcement.
The $2.6 billion offering targets “qualified institutional buyers” and is expected to close on Nov. 21, 2024, subject to satisfaction of customary closing conditions.
MicroStrategy’s note sale could help push Bitcoin price above the $100,000 mark for the first time in history. The announcement comes as Bitcoin is trading above $93,970 as of 1:30 pm UTC, up over 37% during the past month.
MicroStrategy’s $2.5 billion note sale and ETFs could push Bitcoin price to $100,000 in November
MicroStrategy estimates that the sale will raise approximately $2.58 billion or up to $2.97 billion if the initial purchasers purchase the maximum amount of additional notes.
The firm said it intends to use the over $2.5 billion to “acquire additional Bitcoin and for general corporate purposes.”
The capital could help push Bitcoin price above the new $100,000 high, which is currently just over 6% away for the price of the world’s first cryptocurrency.
Some analysts expect Bitcoin to reach $100,000 before the end of the month, including Ryan Lee, chief analyst at Bitget Research, who told Cointelegraph:
“If history repeats itself and Bitcoin prices grow as projected, a 14.7% from the current price level will push the coin well above the $100,000 target for the month. The post-halving cycle trend is also very positive when projecting the future of Bitcoin.”
Positive Bitcoin exchange-traded fund (ETF) inflows are also supporting Bitcoin’s rally. On Nov. 19, the US spot Bitcoin ETFs recorded over $816 million worth of cumulative net inflows, Farside Investors data shows.
The US Bitcoin ETFs recorded their sixth consecutive week of net positive inflows after amassing over $1.67 billion in the trading week of Nov. 11–15.
