On December 7, the company announced its plans to invest $ 400 million in convertible bonds.
The announcement stated Microstrategy intends to invest the net proceeds from selling the bonds in Bitcoin. At the current Bitcoin rate, the 400 million USD would correspond to 20,833 BTC. This would increase the company’s Bitcoin holdings to almost 62,000 BTC.
Microstrategy will pay semi-annual interest to the holders of the bonds until December 2025. The company also reserves the right to redeem the bonds for cash till December 20, 2023.
The announcement states that MicroStrategy may also offer its first-time buyers bonds worth up to $ 60 million within 13 days of the offering’s commencement.
The securities are issued under Rule 144 of the Securities Act and are available only to qualified institutional investors.
The company goes All-in BTC
MicroStrategy Announces Proposed Private Offering of $400 Million of Convertible Senior Notes https://t.co/KvZNIbO6Fa
– Michael Saylor (@michael_saylor) December 7, 2020
MicroStrategy caused a stir in the crypto world in August when the company revealed that it had acquired Bitcoin as its primary reserve asset after buying 21,454 BTC for $ 250 million. The following month it bought another 16,796 BTC for 175 million dollars.
The purchases were made via Coinbase’S OTC platform. On December 5, MicroStrategy announced that the company had obtained another 2,574 BTC at a price of $ 19,428 each for $ 50 million, bringing the total stock of Bitcoins to about 40,824 BTC.
At current market value, MicroStrategy’s BTC Portfolio is worth almost $ 784 million. The company has now generated a profit of 65%.