MicroStrategy has <a href="https://www.microstrategy.com/en/company/company-videos/microstrategy-announces-proposed-private-offering" target="_blank" rel="nofollow noopener">announced</a> raising $400 million via convertible notes to use the net proceeds from the note sale to buy even more Bitcoin. Convertible senior notes are a type of debt security that can be converted into the issuing firm’s shares. The business intelligence firm has been serially investing in Bitcoin throughout 2020. In July, <a href="https://www.cryptoknowmics.com/news/microstrategy-ceo-michael-saylor-plans-to-hold-bitcoins-for-100-years/">MicroStrategy</a> invested up to $250 million in assets including Bitcoin.
<h2><strong>MicroStrategy to Raise $400M Via Convertible Notes</strong></h2>
The interest-bearing notes will be issued under Rule 144 of the Securities Act for qualified institutional investors only that will mature in five years.

As per the release, MicroStrategy can offer an additional $60 million worth of notes within 13 days the offer commences.

https://twitter.com/michael_saylor/status/1336069291444211714

The firm will pay semi-annual interest to the holders of the senior notes until December 2025. The firm also has the right to redeem the notes for cash, class A shares, or a combination of both from Dec. 20, 2023.

The press release further highlighted:

<em>Prior to June 15, 2025, the notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day immediately preceding the maturity date. The interest rate, conversion rate, conversion price, and certain other terms of the notes will be determined at the time of pricing of the offering.</em>
<h2><strong>MicroStrategy's BTC Holdings is Currently at $784 Million</strong></h2>
The shares of MicroStrategy have almost doubled since the beginning of November with the ongoing start of the <a href="https://www.cryptoknowmics.com/news/bitcoin-bulls-profiling-the-standing-of-institutional-investors/">Bitcoin rally</a>. As per an SEC filing dated Dec. 4, the company's total Bitcoin holdings stand about 40,824 BTC.

If one has to look into the current price, the $400 million would likely increase the firm’s holdings by 20,833 which would then bring the firm’s total BTC holdings to almost 62,000 BTC.

At the current price, MicroStrategy’s BTC holdings stand at nearly $784 million. This signifies that the firm is up by 65% from its investment of $475 million.

MicroStrategy to Raise $400M Via Convertible Notes to Buy More Bitcoin

MicroStrategy has announced raising $400 million via convertible notes to use the net proceeds from the note sale to buy even more Bitcoin.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

MicroStrategy to Raise $400M Via Convertible Notes to Buy More Bitcoin

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