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MicroStrategy will Issue 400M in Securities to Buy more BTC

The worlds largest publicly traded business intelligence firm, MicroStrategy has announced plans to invest the proceeds from a 400 million securities offering into Bitcoin. On Dec. 7, the firm revealed plans to issue 400 million in convertible senior notes a debt security that can be converted into the issuing companys shares. The announcement stated

Microstrategy intends to invest the net proceeds from the sale of the notes in Bitcoin. At current prices, the 400 million would increase the companys holdings by 20,833, which would bring the firms total crypto stash to almost 62,000 BTC.

Microstrategy will pay semiannual interest to the noteholders until December 2025. The firm also reserves the right to redeem the notes for cash from Dec. 20, 2023. The announcement states that MicroStrategy may also offer up to an additional 60 million worth of notes to its initial purchasers within 13 days of commencing the offering.

The securities will be issued under Rule 144 of the Securities Act, and will be available to qualified institutional investors only.

In response to MicroStrategys announcement, Gabor Gurbacs, the CEO of New Yorkbased investment firm VanEck, suggested the offering is more indicative of a digital asset fund than a publicly listed company

MicroStrategy made waves in the crypto world during August, when the firm revealed it had adopted Bitcoin as its primary reserve asset after purchasing 21,454 BTC for 250 million. It then purchased a further 16,796 BTC…

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