MicroStrategy wants to raise $400 million via convertible notes and buy bitcoin with the net proceeds

Business intelligence firm MicroStrategy said Monday that it plans to raise $400 million via senior convertible notes — and use the net proceeds of that process to buy bitcoin.

Per a press release from MicroStrategy, the firm will raise "$400 million aggregate principal amount of convertible senior notes due 2025 (the “notes”) in a private offering to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”)."

"The notes will be unsecured, senior obligations of MicroStrategy and will bear interest payable semi-annually in arrears on June 15 and December 15 of each year, beginning on June 15, 2021. The notes will mature on December 15, 2025, unless earlier repurchased, redeemed or converted in accordance with their terms," the firm continued.


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What's more, those the net proceeds of the note sale will be used to buy bitcoin.

The firm said:

"MicroStrategy intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its Treasury Reserve Policy pending the identification of working capital needs and other general corporate purposes." 

The move comes just days after MicroStrategy revealed that it bought $50 million in bitcoin, with its holdings now just north of 40,000 BTC.