The data-analytics software provider MicroStrategy Inc. announced a new fundraising target for bitcoin investments. Instead of the previously announced $400 million, the company aims to raise $550 million.
MicroStrategy Announces Pricing of Offering of Convertible Senior Noteshttps://t.co/bikLdLqrrZ
— Michael Saylor (@michael_saylor) December 9, 2020
MicroStrategy will offer to accredited investors unsecured convertible senior notes with a coupon rate of 0.75% per year. Interest is to be paid semi-annually, starting in 2021.
Maturity date is December 15, 2025, unless the company redeems or converts the notes earlier. MicroStrategy expects to net $537.2 million after expenses for bitcoin investments in accordance with its reserve-asset policy.
On December 5, MicroStrategy CEO Michael Saylor said about the third investment in digital gold. After purchasing 21,454 BTC (~$250 million at the rate at the time of the deal) in August and 16,796 BTC for $175 million in September, the company bought an additional 2,574 BTC for $50 million.
Earlier, Citi analysts downgraded their ratings on MicroStrategy Inc. shares, after which their price fell sharply.
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