Bloomberg: Demand for MicroStrategy bonds hits $1.6 billion

MicroStrategy raised the target size of its convertible senior notes to $500 million. The volume of orders for the securities totalled about $1.6 billion, Bloomberg reported, citing its own sources.

MicroStrategy announces pricing of $500 Million of 6.125% Senior Secured Notes due 2028 to acquire additional #bitcoin. $MSTRhttps://t.co/qEhHtJS69Q

— Michael Saylor (@michael_saylor) June 8, 2021

Initially MicroStrategy announced the issuance of debt securities worth $400 million due 2028. The funds raised will be used by the business analytics software provider to purchase bitcoin.

According to the agency, the entire tranche of bonds was sold by the company on Tuesday, June 8. In the company’s statement, it said it expected to close the offering by June 14.

MicroStrategy also set the bond yield at 6.125% per year, although Bloomberg data indicated that earlier discussions with investors had targeted rates of 6.25%–6.5%.

The notes will be secured by the company\’s assets, including bitcoins acquired during and after the offering. Bitcoins already owned by MicroStrategy (92,079 BTC, according to Bitcoin Treasuries) are not included in the collateral.

In December 2020 the firm issued unsecured convertible senior notes for $650 million to raise funds for the purchase of digital gold. The amount exceeded the target by $100 million, and the initially planned surpassed by $250 million.

In February 2021 MicroStrategy sold investors similar notes worth $1.05 billion.

As reported, the firm\’s CFO Fong Le described bitcoin investments as direct duties of technology companies.

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