Microstrategy Announces $600M Investment, BTC Breaks $50K

Right as Microstrategy announces $600M investment plan into bitcoin, the cryptocurrency broke the $50,000 for the first time in history as we are reading more in today’s bitcoin latest news.

Microstrategy announces $600M in BTC as the software maker announced another convertible note issuance for investors to purchase BTC which comes a month after the company already raised $650 million in a separate offering to purchase BTC.  The news pushed the price of BTC to a new high of $50,085 in the short pump which retraced to a $49,650 level as of late.

MicroStrategy Announces Proposed Private Offering of $600 Million of Convertible Senior Notes $MSTRhttps://t.co/pljBkX7jzF

— Michael Saylor (@michael_saylor) February 16, 2021

As per the reports, Microstrategy announces a $600 million investment in BTC with the notes being unsecured and will bear interest payable semi-annually in arrears on February 15 and August 15 every year, starting with this one. The notes will mature on February 15, 2027, unless they are repurchased earlier or converted in accordance with their terms.  The company intends to hold on to BTC until 2022:

 “Subject to certain conditions, on or after February 20, 2024, MicroStrategy may redeem for cash all or a portion of the notes.”

It added that the company expects to grant to the initial purchasers of the notes as an option to buy within the 13-day period starting and including the date of which the notes are first issued up to another $90 million aggregate principal amount of the notes:

 “MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoins.”

Only the qualified institutional buyers pursuant to the Rule 144A under the Securities Act will be offered to purchase these convertible notes. This is similar to the previous notes that the company closed in 2020. The company sits on over 70,000 BTC worth $3.5 billion at press time with the funds growing as Microstrategy plans on buying even more BTC which will attract other institutional and traditional companies to invest some of their own money into the benchmark cryptocurrency.

As reported recently, Microstrategy is moving to start assembling a blockchain analytics team which will be the first BTC-related software product from a company that is known to bet on Bitcoin as a reserve asset. The company based in Tysons Corner put out calls on LinkedIn for a Blockchain Data Analyst and Blockchain Data Engineer explaining the job postings that they will join a new team building an analytics platform with advanced metrics and insights for BTC.