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.

About Author

Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

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