MicroStrategy Plans to Raise Another $600 Million to Buy Bitcoin

MicroStrategy, the publicly-listed company that was amongst the first to put Bitcoin on its balance sheet, has now announced plans to raise another $600 million to buy more of the digital currency.

  • In a press release dated February 16th, MicroStrategy announced that it intends to offer a $600 million aggregate principal amount of convertible senior notes that are due 2027 in a private offering to qualified institutional investors.
  • Furthermore, the release adds that:

The notes will be convertible into cash, shars of MicroStrategy’s class A common stock, or a combination of cash and shares of MicroStrategy’s class A common stock, at MicroStrategy’s election.

  • The exciting bits come afterward where the company reveals its actual intentions. The company plans to “use the net proceeds from the sale of the notes to acquire additional bitcoins.”
  • This is far from the first time the company uses this maneuver to obtain more cash and buy bitcoins with it.
  • Back in December, CryptoPotato reported that it plans to buy another $650 million worth of BTC after a convertible note offering.
  • This comes as Bitcoin’s price finally broke the coveted $50K mark for the first time in history.
btcusd_chart-min
BTC/USD, Bitstamp. Source: TradingView
  • At the time of this writing, the price has retraced, and it’s currently trading around $49,000.

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