MicroStrategy plans to sell $600 million worth of securities to invest in BTC

The funds will be issued in the form of convertible senior notes

05.03.2024 - 07:38

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What’s new? Analytics software company MicroStrategy (MSTR) plans to sell $600 million worth of securities to use the money to buy BTC. According to a press release, the securities will be issued in the form of convertible senior notes. The company also expects to give initial purchasers a call option on the bonds to buy up to another $90 million of aggregate principal amount.

MicroStrategy’s press release

Convertible senior notes is a debt security that can later be converted into equity

What else is known? The notes will mature on March 15, 2030, unless early redeemed, repaid, or converted in accordance with their terms. The notes may be converted into cash, MicroStrategy’s Class A common stock, or a combination of cash and Class A common stock.

On March 5, MSTR shares rose by 23,59% to $1354. Bitcoin rose by 5,87% to $67 221 and is rapidly approaching an all-time high (ATH) of $69 000 reached on November 9, 2021.

MicroStrategy first started buying bitcoin in August 2020 and has been steadily adding to its portfolio ever since. According to BitcoinTreasuries, MicroStrategy owns 193 000 BTC worth ~$13 billion as of February 26. At the same time, their purchase price amounted to $6,09 billion.

Thus, the company’s unrealized gain from investing in the asset exceeds $6,9 billion. MicroStrategy is the largest holder of BTC among publicly traded companies.

Earlier, MicroStrategy board head Michael Saylor said he has no plans to sell BTC to the company in the near future or perhaps never at all. According to him, spot exchange-traded funds (ETFs) based on the first cryptocurrency “have opened up a gateway for institutional capital to flow into the bitcoin ecosystem.”

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