Is Twitter buying Bitcoin?
Is Twitter buying Bitcoin? Twitter announced that it has raised $1.25 billion in convertible notes. Giving some the impression that the funds will be used to purchase Bitcoin.
The notes will be unsecured and interest will be payable semi-annually in arrears. The notes will be convertible into cash at Twitter’s election. The interest rate, initial conversion rate and other terms of the notes are to be determined upon pricing of the offering.
The news comes just days after MicroStrategy bought over $1 billion worth of Bitcoin. Which was raised from a similar security debt offering.
MicroStrategy has set the trend for offering debt security in the form of company convertible notes. And then using the money raised from the sale to purchase Bitcoin.
MicroStrategy has done two security debt offerings. The first worth $650 million and the most recent one being worth $1 billion. The firm will continue this method in the future as well.
Misha Lederman and Anthony Pompliano are among those that believe Twitter will follow in the footsteps of MicroStrategy. Whether or not that that happens, it is safe to say security debt offering seems to be the latest institutional tool.
“Twitter just announced a $1.25 billion convertible note offering,” Pompliano said in a tweet. “Given the recent treasury strategy of Microstrategy, could @jack be planning to put bitcoin on Twitter’s balance sheet? Time will tell, but there are few people who understand the power of bitcoin like Jack.”
Traditional financial banking systems not pleased with trend
Traditional financial banking systems are not pleased with the trend. Because it is often advised not to purchase a volatile asset using credit money.
Bitcoin spent most of February under $50,000 despite setting a new all-time high of $58,000 two weeks into the month. However, on-chain metrics look bullish as Bitcoin outflows continue. From exchanges and institutions that are still buying BTC.
MicroStrategy announced another $15 million purchase of Bitcoin today. Many believe the leading cryptocurrency will mimic the price action of last month and rise to a new all-time high in the coming weeks.