MicroStrategy to raise an additional $400 million to buy bitcoin

MicroStrategy Inc., the analytics software provider, announced a private placement of $400 million of senior convertible notes due 2028.

MicroStrategy Announces Proposed Private Offering of $400 Million of Senior Secured Notes to acquire additional #bitcoin. $MSTRhttps://t.co/ilhUt1M73j

— Michael Saylor (@michael_saylor) June 7, 2021

The notes will be sold to accredited investors. The notes will carry senior status.

The proceeds from the offering will be used to purchase bitcoin.

According to Bitcoin Treasuries, MicroStrategy owns 92,079 BTC valued at more than $3.37 billion.

In August 2020, MicroStrategy invested $250 million in bitcoin. Later, the company’s board approved a policy to ramp up investments in the leading cryptocurrency using cash reserves.

In December, the company issued convertible bonds worth $650 million to fund additional purchases of digital gold.

In February 2021, the software provider issued more than $1 billion in debt securities and again deployed the raised funds into cryptocurrency.

In March, MicroStrategy acquired 328 BTC, roughly 205 BTC and 262 BTC. For $15 million the firm invested in digital gold in April and in May. Later the company bought 229 BTC for $10 million.

Fong Le, MicroStrategy’s CFO, said bitcoin investments are the obligation of technology companies.

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