Hassan Maishera
TL;DR
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MicroStrategy wants to raise $500 million to purchase more bitcoins.
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The company currently holds 214,400 bitcoins.
MicroStrategy Wants to Purchase More Bitcoins
MicroStrategy has announced that it intends to raise $500 million via a convertible senior note offering, with an option for an additional $75 million.
The notes, due 2032, will be issued in a private offering to qualified institutional investors. According to the company statement on Thursday, the notes are also unsecured, bear interest semi-annually and are convertible into cash, MicroStrategy class A common stock, or both.
The company intends to use the funds to acquire more bitcoins and carry out other corporate activities. With convertible notes, MicroStrategy can manage its debt with flexibility while also enjoying the benefits of equity appreciation.
MicroStrategy is one of the leading corporate Bitcoin holders in the world and has acquired more than 200,000 bitcoins since it began investing in the asset in 2020. The company previously proposed a $600 million convertible note offering in March and purchased an additional 9,245 BTC that month for $623 million in cash.
The firm now holds 214,400 bitcoins for a total cost of $7.54 billion, or $35,180 per bitcoin after further acquisitions in March and April. At the moment, the company’s bitcoin holdings are valued at $14.5 billion at the current BTC price.
