MicroStrategy raises $650 million for Bitcoin purchase

The analytics software provider MicroStrategy Inc. announced that it has secured $650 million in debt financing. The funds are intended for subsequent investment in Bitcoin.

MicroStrategy Completes $650 Million Offering of 0.750% Convertible Senior Notes Due 2025 https://t.co/37y84GToPe

— Michael Saylor (@michael_saylor) December 11, 2020

The amount turned out to be $100 million above the target, which had been discussed a few days earlier. It also surpassed the initially stated financing amount by $250 million.

MicroStrategy offered accredited investors unsecured convertible senior notes bearing a coupon of 0.75%. Interest is to be paid semi-annually, starting in 2021. The maturity date is December 15, 2025, unless the company redeems or converts the notes earlier.

Information about the buyers of the debt instruments is not disclosed.

On December 5, MicroStrategy CEO Michael Saylor announced the third investment in digital gold to date. After purchasing 21,454 BTC (~$250 million at the price at the time of the deal) in August and 16,796 BTC for $175 million in September, the company added a further 2,574 BTC for $50 million.

Earlier, Citi analysts cut their ratings on MicroStrategy Inc.’s shares, and their price fell sharply.

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