Software intelligence company MicroStrategy announced in a press release its intention to offer $ 400 million privately in convertible senior notes so it could buy more bitcoin.
“MicroStrategy intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its Treasury Contingency Policy until working capital needs and other general corporate purposes are identified,” the statement states.
- MicroStrategy, led by CEO Michael Saylor, made headlines earlier this year when it invested $ 250 million to buy 21,454 bitcoin (about 0.1 percent of all bitcoin that will ever exist).
- The press release explained that the note sale is subject to market conditions and other factors, and that the notes will be unsafe and attract interest in arrears on June 15 and December 15 each year, starting at 15 June, 2021. Notes mature. December 15, 2025 and MicroStrategy may redeem for cash on or after December 20, 2023.
- MicroStrategy “expects to provide initial purchasers with an option to purchase, within a period of 13 days beginning with, and including, the date on which the notes are first issued, up to an aggregate principal amount of an additional $ 60 million the notes, ”per release.
- Immediately after the announcement, some in the Bitcoin space noted the innovative nature of the plan, noting that Saylor was leveraging tools within the traditional financial sphere to invest in Bitcoin in an almost unprecedented way.