MicroStrategy Announces New Securities Offering To Invest Into BTC

MicroStrategy announces new securities offering to raise $400 million and to invest in BTC as the leading business intelligence company reported, and doubled down on Bitcoin a few weeks ago so let’s read more n the latest BTC news.

The world’s biggest publicly traded business intelligence company MicroStrategy announces the plans for a new securities offering in order to invest the $400 million of the offerings into bitcoin. The company revealed the plans to issue $400 million in convertible senior notes which is a debt security that can be converted into the company’s shares as the announcement stated:

 “Microstrategy intends to invest the net proceeds from the sale of the notes in Bitcoin.”

At the current price, the $400 million will increase the company’s holdings by 20,833 which will bring the company’s total crypto stash to about 62,000 BTC. Microstrategy will pay semi-annual interests to note-holders until December 2025 as the company reserved the right to redeem the notes for cash, starting from December 20, 2023. The announcement said that Microstrategy could also offer upon the additional $60 million worth of notes to the buyers in 13 days of commencing the offering. The securities will be issued under Rule 144 of the Securities Act and will be available for qualified institutional investors only.

MicroStrategy Announces Proposed Private Offering of $400 Million of Convertible Senior Noteshttps://t.co/KvZNIbO6Fa

— Michael Saylor (@michael_saylor) December 7, 2020

In response to the announcement that the company made, Gabor Gurbacs, the New-York Based investment company VanEck’s CEO, noted that the offering indicates a digital asset fund rather than a publicly listed company. Nonetheless, Microstrategy made waves in the crypto space during August when the company revealed that they adopted Bitcoin as the main reserve asset and purchased $21,454 BTC for $250 million. later, the company purchased 16,796 BTC for $175 million and the purchases were made thanks to the help of Coinbase and its OTC platform.

A few days ago, as December started, Michael Saylor, the CEO of the company, announced the company had purchased an additional 2,54 BTC priced at approximately $19,427 each for $50 million, bringing the total crypto holdings up to 40,824 BTC. With the current market value, the bitcoin stash of the company is worth about $784 million which means the company is now up by 65% on its $475 million investment.

As previously reported, the business intelligence company Microstrategy remains bullish as it purchased 2,754 BTC at $19, 427 each, amounting to a total of $50 million. CEO Michael Saylor confirmed the purchase on Twitter. The company invested about $250 million in  BTC back in august when the coin was in the $11,700 range.