Twitter to Pull a MicroStrategy and Buy Bitcoin? The Firm Plans a $1.25 Billion Convertible Notes Offering
The giant social media platform Twitter has announced plans to raise $1.25 billion through a convertible senior notes offering. Although the company breached “corporate purposes” as the main reason, cryptocurrency proponents speculated if the firm could pull a MicroStrategy and allocate the funds in BTC.
Twitter to Raise $1.25B
According to a press release from earlier today, Twitter will offer a $1.25 billion aggregate principal amount of convertible senior notes due in 2026. The endeavor will take place in a private placement to qualified institutional buyers.
The statement described the notes as “unsecured, senior obligations of Twitter,” whose interest will be “payable semi-annually in arrears.” The company will be able to convert the notes into cash, shares of its common stock, or a combination of the two options. Upon the pricing of the offering, the firm will determine the interest rate, initial conversion rate, and “other terms of the notes.”
The company said that it would use this considerable amount for “general corporate purposes, including capital expenditures, working capital, and potential acquisitions.”
Maybe Bitcoin?
Although Twitter hasn’t revealed anything specific in connection to bitcoin, the ever-vigilant crypto community saw an opportunity to debate whether the firm might allocate some, if not all, of that amount into BTC.
Twitter just announced a $1.25 billion convertible note offering.
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.
— Pomp 🌪 (@APompliano) March 1, 2021
Proponents, such as Anthony Pompliano, were quick to react and draw a comparison between a similar endeavor undertaken on two occasions by the business intelligence giant – MicroStrategy. Michael Saylor’s company raised over $1.6 billion in total from convertible senior notes offerings and allocated all funds in the primary cryptocurrency.
Keeping in mind that Twitter’s CEO, Jack Dorsey, is a long-time BTC proponent with multiple pro-bitcoin-related projects, similarly to Saylor, it wouldn’t be much of a surprise if the social media giant indeed heads down that road. The other firm that Dorsey runs as CEO, Square, has already made two investments in BTC as the second one, worth $170 million, came less than a month ago.
Moreover, Twitter’s CFO, Ned Segal, hinted recently that the company could be looking into putting the cryptocurrency on its balance sheet.
