Microstrategy Buy Bitcoin

MicroStrategy Completed $650m Debt Offering to Buy Bitcoin

Business intelligence firm MicroStrategy announced that it had raised US$650 million via a convertible note. This would allow the firm to buy more Bitcoin (BTC). 

The final figure is US$100 million more in previous public statements, after the purchasers exercised an option to buy additional $100 million of the notes.

In accordance with its treasury reserve policy, MicroStrategy would use the net proceeds, US$634.9 million, for Bitcoin allocation. 

MicroStrategy said the notes bear an annualized interest rate of 0.75%, which will be paid twice each year on June 15 and December 15, beginning on June 15, 2021.

MicroStrategy sold the notes via “a private offering to qualified institutional investors,” without further information about the purchasers. 

The move follows MicroStrategy’s US$50 million purchase of Bitcoin this December. Its holdings has accumulated to above 40,000 BTC. While many see the potentials in MicroStrategy’s moves, Citibank’s analyst Tyler Radke downgraded the company’s stock to Sell, citing the company’s heavy focus on Bitcoin.