MicroStrategy increases convertible notes offering to $700 million in plan to acquire additional Bitcoin
- MicroStrategy has added an additional $200 million to its initial convertible notes offering as it looks to acquire more Bitcoin.
- Bitcoin fell below $66K on Thursday, raising investor fears.
- Bitcoin miners may be among top sellers.
MicroStrategy, led by CEO Michael Saylor, announced an increase in its initial convertible notes offering from $500 million to $700 million in a press release on Friday. Meanwhile, Bitcoin dropped below $66K, with on-chain data suggesting miners are the major sellers.
Largest Bitcoin holder increases convertible notes offering to acquire more BTC
In a press release on Friday, business intelligence firm MicroStrategy announced additional plans to raise the sale size of its convertible senior notes to $700 million.
Also read: Bitcoin Weekly Forecast: Has BTC found a local price bottom?
The firm had initially released an announcement on Thursday, revealing its plans to offer $500 million in aggregate principal amount of convertible senior notes due 2032 in a private offering to institutional buyers.
The offer is intended to be open until June 17, with an option for early buyers to purchase an additional $100 million of notes within the first 13 days of its issuance.
Being the largest single Bitcoin holder with 214,400 BTC, MicroStrategy may be looking to acquire extra Bitcoin with the convertible notes sale, promising an annual yield of 2.25%.
Read more: Why Bitcoin remains sideways despite record BTC ETF inflows
Furthermore, Bitcoin's price fell in the early hours of Friday, dropping to around $65K from a previous price of $70K earlier in the week. This has sparked concerns among investors, with several analysts speculating that prices may drop to $60K.
On-chain data suggests that miners may be playing a major role in Bitcoin's recent descent as mining pools have seen increased BTC transfers.
Founder and CEO of CryptoQuant, Ki Young Ju, believes that a break-up from Bitcoin's hashrate 18-month upward trend may indicate that certain Bitcoin mining companies are liquidating their holdings.
Also read: Bitcoin long positions signal retail traders attempt to buy the dip
"Bitcoin's hashrate 18-month upward trend has broken, suggesting some miners are capitulating," said Young Ju.
BTC Network True Hashrate
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
