Microstrategy to buy more Bitcoins (BTC) by offering $600M in notes

Microstrategy is already well-known in the crypto industry for its massive hoard of Bitcoin, the largest among publicly listed firms. However, the business intelligence firm is still planning to acquire more BTC and will be issuing senior convertible notes to fund the planned purchase.

In a press release on Tuesday, Microstrategy announced that it plans to raise $600 million by issuing senior convertible notes. The business intelligence firm said that the proceeds will be used for acquiring additional Bitcoin.

The notes will be offered to institutional investors and will carry a six-year term. “MicroStrategy Incorporated (Nasdaq: MSTR) today announced that it intends to offer, subject to market conditions and other factors, $600 million aggregate principal amount of convertible senior notes due 2027 (the “notes”) in a private offering to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), the company said.

The notes, which are unsecured, will mature on February 15, 2027. Interest will be paid semi-annually on February 15 and August 15 each year starting on August 15, 2021.

The company will use the proceeds to further beef up its already substantial BTC holdings. “MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoins,” the business intelligence firm added.

This is the second time that company raised funds by the issuance of notes to buy the crypto. Back in December 2020, was also able to raise $650 million by issuing senior convertible notes, according to CNBC.

Microstrategy is already acknowledged as the top publicly listed company with the biggest Bitcoin holding of 71,079 BTC. It is followed by Elon Musk’s electric car company Tesla, which recently revealed that it purchased 43,000 BTC.

Microstrategy made headlines last year as one of the first few companies to invest in Bitcoin. Its first purchase was based in August 2020 with the acquisition of 21,454 BTCs using cash on its balance sheet.

Known for his bullish stance on BTC, CEO Michael Saylor explained last year that the firm’s investment in Bitcoin is for the long haul. “They don’t understand the mindset of long,” he explained. “I’m buying it for the dude that’s going to work for the dude that’s going to get hired by the guy who takes over my job in 100 years.”

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