The software vendor MicroStrategy Inc. announced another round of selling convertible senior notes for $600 million, due 2027.
MicroStrategy Announces Proposed Private Offering of $600 Million of Convertible Senior Notes $MSTRhttps://t.co/pljBkX7jzF
— Michael Saylor (@michael_saylor) February 16, 2021
Purchasers of the securities will be accredited investors. The funds raised from the offering will be used to purchase bitcoin.
MicroStrategy will offer unsecured convertible notes. Interest on them will be paid semi-annually, beginning in August 2021.
The maturity date will be February 15, 2027, unless the company redeems or converts the notes earlier. After February 20, 2024, MicroStrategy may redeem all or part of the notes.
The notes will be convertible into cash, Class A common stock or a combination of these assets.
MicroStrategy also plans to grant initial purchasers an option to buy additional notes within 13 days of the initial issuance. It would cover up to $90 million of additional notes. The company said the final offering is subject to market conditions.
Against this backdrop, the price of bitcoin reached a new all-time high, surpassing the $50,000 mark.
In December 2020, the software vendor announced its intention to raise $400 million for additional investments in digital gold through a bond issue. Later, MicroStrategy raised the offering to $550 million.
In February 2021, the software vendor additionally purchased 295 BTC for $10 million. In total, MicroStrategy owned 71,079 BTC.
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