MicroStrategy plans to raise an additional $690 million to buy bitcoin

MicroStrategy announced Tuesday that it plans to raise an additional $690 million to buy bitcoin.

The raise will be facilitated by senior convertible notes, a type of debt security that can be converted into cash or shares. MicroStrategy's notes will be issued to qualified institutional buyers, and its terms are yet to be finalized.

The notes will be unsecured and will bear interest payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2021, said MicroStrategy. The notes will mature on February 15, 2027, unless earlier repurchased, redeemed, or converted.

Meanwhile, bitcoin's price has soared above $50,000 for the first time, pushing the cryptocurrency's market capitalization closer to $1 trillion.

MicroStrategy began purchasing bitcoin in August 2020. The company currently owns 71,079 bitcoin, worth about $3.5 billion at current prices.

MicroStrategy CEO Michael Saylor recently told The Block in an interview that bitcoin is the "best money ever created." He compared bitcoin to gold and the U.S. dollar and said the cryptocurrency is a superior asset for a treasury given that it is not deflationary by design.