Twitter Inc. the social media giant has announced $1.25 billion in convertible notes days after MicroStrategy bought over one billion worth of Bitcoin raised from a similar security debt offering.
TWITTER, INC. ANNOUNCES $1.25 BILLION CONVERTIBLE NOTES OFFERING$TWTR
— *Walter Bloomberg (@DeItaone) March 1, 2021
The announcement has got the rumors mill running especially given Jack Dorsey, the Twitter CEO himself is a big-time Bitcoin proponent and his other venture Square Inc has invested heavily in the top cryptocurrency. MicroStrategy, the software giant has set the trend for offering debt security in the form of company convertible notes and use the money raised from the sale to purchase Bitcoin. MicroStrategy up until now has done two security debt offering one worth $650 million while the most recent one being worth $1 billion. The firm has also claimed that they would continue debt security offerings in the future as well.
Debt Security Offering: The New Fund-Raise Tool For Institutions to Buy Bitcoin
Fund-raising via security debt offering seems to be the new tool for institutions to make investments. While it is not confirmed yet whether Twitter would follow in the footsteps of MicroStrategy or use the proceeds for other investments, however security debt offering seems to be the latest institutional tool.
While traditional financial banking systems are not pleased with the trend as it is often advised not to purchase a volatile asset using credit money, however, the fact that billion-dollar institutions do not seem to have an issue given these debt offerings are available at fairly cheap interest rates.
The top cryptocurrency has spent most of February under $50,000 post its new all-time-high above $58,000. While the top cryptocurrency is struggling to stay above $50,000, on-chain metrics looks quite bullish as bitcoin outflows continue from exchanges and institutions are still buying BTC. MicroStrategy announced another $15 million purchase today and with the start of the new month, many believe Bitcoin would mimic the price action of last month and rise to a new all-time high in the coming weeks.
MicroStrategy has purchased an additional ~328 bitcoins for ~$15.0 million in cash at an average price of ~$45,710 per #bitcoin. As of 3/1/2021, we #hodl ~90,859 bitcoins acquired for ~$2.186 billion at an average price of ~$24,063 per bitcoin. $MSTRhttps://t.co/fGH5KacsPI
— Michael Saylor (@michael_saylor) March 1, 2021
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