MicroStrategy Inc. (NASDAQ: MSTR), which bills itself as the “largest independent publicly listed business 400 company” $ 400 million through convertible bonds. The collected funds will be invested in bitcoin.
The company said in a press release that it will issue convertible bonds with a maturity date of December 15, 2025. All proceeds from the issue will be spent on the purchase of the first cryptocurrency. At the price of $19,000 per bitcoin, these funds can be used to buy more than 21 thousand BTC. Thus, in total, the company will become the holder of almost 62,000 bitcoins.
The bonds will be issued without collateral and can be redeemed in Fiat currency or MicroStrategy shares if certain requirements are met before the due date. Interest will be paid to creditors twice a year. The bonds will be issued in accordance with Rule 144A of the U.S. securities Act of 1933 and will only be available to qualified institutional investors.
MicroStrategy started investing heavily in bitcoin in the summer — the first purchase (21,454 bitcoins worth $250 million) took place in mid-August. In a press release, Sailor wrote:”This investment reflects our belief that bitcoin, as the world’s most widely used cryptocurrency, is a reliable means of saving and an attractive investment asset with a longer-term value growth potential than storing cash.”
This move had a positive impact on the company’s share price — they rose by 30%, and in September MicroStrategy invested another $175 million in bitcoin. In an interview, sailor explained that His company is trying to keep its reserves in excess of $500 million.
A few days ago, MicroStrategy made another purchase, spending $50 million. As a result, 2,574 bitcoins were purchased at a price of $19,427.