Twitter announces to raise $1.25 billion worth of convertible notes & community believes it may be for Bitcoin
Twitter announced that it will be raising a mammoth of $1.25 billion from eligible institutional buyers using convertible notes. A few of the community influencers like Misha Lederman and Anthony Pompliano predict that Jack Dorsey may be following Microstrategy and getting Bitcoin on Twitter’s balance sheet.
Is Twitter following the footsteps of Microstrategy?
MicroStrategy, directed by Bitcoin evangelist Michael Saylor has raised an eye-twitching amount of cash from investors using convertible notes to buy Bitcoin. As Twitter announced that it wants to offer $1.25 billion worth of convertible notes, Some crypto influencers in the community may believe that Jack Dorsey may raise funds to put some Bitcoin in the company’s balance sheet.
Klever’s Misha Lederman and Anthony Pompliano, popularly known as Pomp on Twitter are a few among them. As per the press release, the convertible notes offered by Twitter will be due in 2026. Only qualified institutional investors can access the funds raised.
Money for “corporate purposes and potential acquisitions”
Although the recent fundraising was carried out by Microstrategy and Square for buying $50 million worth BTC in September 2020, the goal may not be Bitcoin for this time. As per the press release some of the net proceeds from selling the notes can be used to pay the costs of note hedge transactions.
The rest others will be used for payouts on the maturity of Twitter’s 1% convertible senior notes due in 2021 and “for general corporate purposes, including capital expenditures, working capital, and potential acquisitions.” Hence, there are chances that Twitter may get some Bitcoins on its balance sheet.