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October 3, 2022
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MicroStrategy will issue 400 million bonds to buy more Bitcoin –

MicroStrategy just bought it BTC worth $ 50 million, and is already figuring out how to get even more of them. The company announced its plans to invest in Bitcoin another 400 million dollars. For this purpose, it will use the funds from the sale of bonds.

Another $ 400 million

On December 7, the company disclosed the issue plans $ 400 million in convertible bonds – debt securities that can be converted into shares of the issuing company. The announcement said:

Microstrategy intends to invest the net proceeds from the sale of bonds in Bitcoin.

At current prices, $ 400 million would increase the company’s share by 20,833 BTC. If the company actually invested these funds, there would already be 62,000 in its portfolio. bitcoins.

MicroStrategy will pay interest to shareholders every six months until 2025. The company also reserves the right to redeem the bonds for cash from December 20, 2023.

The announcement said MicroStrategy could also offer up to $ 60 million in additional bonds to its original buyers within 13 days of the launch of the offering.

These securities will be issued pursuant to Rule 144 of the Securities Act and will only be available to qualified institutional investors.

In response to MicroStrategy’s announcement, Gabor Gurbacs, CEO of New York-based investment firm VanEck, suggested the offering is closer to a digital asset fund than a publicly traded company:

Microstrategy effect

MicroStrategy entered the world of cryptocurrencies with impetus. In August, it revealed that Bitcoin had become its main reserve asset. The initial company bought 21,454 BTC for $ 250 million. A month later, it made another purchase of 16,796 BTC for USD 175 million. As it turned out later, purchases were made via the platform OTC and Coinbase brokerage.

In this way, the so-called Microstrategy effect. Saylora was followed by other companies, including Square Jack Dorsey or Stone Ridge.

A few days ago, MicroStrategy CEO Michael Saylor announced that the company had purchased another 2,574 BTC, thereby increasing its portfolio to 40,824 Bitcoins.

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