Famous quote from Dr Puell.
"The best time to buy #Bitcoin is at the bottom, the second best time to buy is at the post halving re-accumulation"
He didn't say it in words, he said it in numbers.
I've cleaned his model up to say it a bit clearer.
MicroStrategy bought 7,420 BTC after selling $1 billion in bonds
MicroStrategy reported the purchase of an additional 7,420 BTC for $458.2 million at a price of ~$61,750 following the sale of $1.01 billion in convertible senior notes due 2028 at 0.625% APR.
The net proceeds from the sale of the securities totaled approximately $997.4 million. $500 million will be used to redeem the remaining principal amount of the senior secured notes due 2028 with a coupon rate of 6.125%.
Upon redemption, the securities' collateral, which is approximately 69,080 BTC, will be unlocked.
The rest of the money was used for bitcoin purchases and corporate purposes. The firm already holds 252,220 BTC on its balance sheet, purchased for $9.9 billion at an average rate of ~$39,266 per coin. Their value at the current first cryptocurrency price of $62,900 is ~$15.86 billion.
On September 16, MicroStrategy announced a $700 million securities offering to βacquire additional bitcoins and fund general corporate purposes.β The target threshold was later raised to $875 million.
The notes will mature on September 15, 2028, unless redeemed or converted early. Subject to certain conditions, on or after December 20, 2027, the company may redeem all or any portion of the issue for cash.
Holders will have the right to require MicroStrategy to redeem all or any portion of their securities on September 15, 2027.
At maturity, holders may convert the notes into cash, MicroStrategy's Class A common stock or a combination thereof at the issuer's option.
As a reminder, on September 13, MicroStrategy reported the purchase of an additional 18,300 BTC for $1.1 billion.
