MicroStrategy to raise $400 million for additional Bitcoin investments

The analytics-software provider MicroStrategy Incorporated announced plans to issue convertible senior notes worth $400 million, maturing in 2025.

MicroStrategy Announces Proposed Private Offering of $400 Million of Convertible Senior Noteshttps://t.co/KvZNIbO6Fa

— Michael Saylor (@michael_saylor) December 7, 2020

The company plans to invest the proceeds from the offering in Bitcoin, in line with its treasury-management policy.

Qualified institutional investors may participate as purchasers of the notes.

The notes will be senior unsecured obligations of MicroStrategy. Interest will accrue semiannually on them.

Maturity will occur on December 15, 2025, unless the company redeems or converts the notes earlier in accordance with their terms. After December 20, 2023, MicroStrategy may redeem all or a portion of the notes.

The notes may be converted into cash, Class A common stock, or a combination of these assets.

In August, MicroStrategy became the first Nasdaq-listed company to convert a portion of its capital into Bitcoin. The company purchased 21,454 BTC — about $250 million at the time.

In September, the firm boosted its investment in the leading cryptocurrency in line with the new treasury policy and acquired an additional 16,796 BTC for $175 million.

In December, MicroStrategy increased its Bitcoin reserves by a further 2,574 BTC, purchased for $50 million.

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