MicroStrategy To Offer Another $600 Million Of Convertible Notes To Buy More Bitcoin

Gigachad CEO Michael Saylor announced on Twitter this morning that his company, software intelligence firm MicroStrategy, has proposed a private offering of $600 million in convertible senior notes so it can “use the net proceeds from the sale of the notes to acquire additional bitcoins,” according to the press release Saylor shared.

These notes would officially be due on February 27, 2027, with interest being paid on February and August 15 of each year starting in August 2021. The amount of interest paid is to be determined at the time of the pricing of the offering. 

Whoever takes up this offer will be given a grant that allows them to purchase the notes “within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $90 million aggregate principal amount of the notes,” per the release.

Ever since MicoStrategy bought 0.1 percent of the total bitcoin supply last summer, it has been accumulating more and more. To say that it went “all in” on a Bitcoin standard would be an understatement, with this being just the latest speculative attack on the U.S. dollar that it aims to complete. In December 2020, the firm announced its intention to offer $650 million of convertible notes to buy bitcoin.

For those who don’t know what a speculative attack is, allow me to explain: Since the U.S. dollar and other fiat currencies have infinite supplies with constantly decreasing purchasing power, the power move here is to take on USD-based debt now to buy bitcoin, which has a finite supply with increasing purchasing power. Over time, the debt would be easy to pay off, not only with the money from the investment, but because the value of the fiat would naturally become much lower. Essentially, it’s the practice of taking on cheap debt to buy a harder asset whose value you expect to rise.

Bitcoin thought leader Anil shared a great example of a historic speculative attack committed by Hugo Stinnes using gold against the German papiermark before the collapse of the Weimar Republic in 1923.

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