Bitcoin Bulls Go Ballistic On Twitters $1.25bn Convertible Note Offering

Monday 01 March 2021, 11:16 PM AEST - 1 month ago

Is Twitter planning to add Bitcoin to its balance sheets? Many crypto bulls think it is.

This Monday, the social media giant stirred the cryptocurrency sector after announcing that it tends to raise $1.25 billion by selling convertible senior notes due for a 2026 expiry to accredited investors. Twitter also added that it would offer an additional $187.5 million aggregate principal amount of the notes to initial purchasers.

Anthony Pompliano…

….a solo-capitalist previously known for heading crypto-based investment firm Morgan Creek Digital Assets interpreted Twitters note auction plans as an indication that it would purchase bitcoin with the proceeds.

His reason was simple: MicroStrategy, a public-traded business intelligence firm, announced a similar treasury strategy on February 16, clearly telling its potential investors that it would use the raised capital — $600 million — to buy bitcoin tokens.

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

Twitter flirted with the idea of investing in Bitcoin earlier in February, right after Tesla Inc. revealed that it holds $1.5 billion of the cryptocurrency in its balance sheets. Ned Segal, the chief financial officer at Twitter, nonetheless conditioned their potential entry into the Bitcoin space by saying that their workers and vendors should first demand the cryptocurrency as payments.

Twitters latest announcement did not mention the word bitcoin anywhere. Instead, the firm stated that it would use a portion of the proceeds to pay for its convertible note hedge transactions. Meanwhile, the firm will use the rest of the amount for capital expenditures, including potential acquisitions.

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