MicroStrategy Inc., a provider of analytical software, has announced a new goal to raise funding for bitcoin investments. Instead of the $400 million previously announced, the company expects to raise $550 million.
MicroStrategy will offer convertible „senior“ notes without collateral at 0.75% to accredited investors. Interest is expected to be paid every six months starting from 2021.
The maturity date is 15 December 2025, if the company does not repurchase or converts the notes earlier. MicroStrategy expects to receive $537.2 million after deducting costs for investments in bitcoin in accordance with its reserve asset allocation policy.
On 5 December, Michael Saylor, head of MicroStrategy, announced the third digital gold investment. Following the acquisition of 21,454 BTCs (~$250 million at the exchange rate at the time of the transaction) in August and 16,796 BTCs worth $175 million in September, the company acquired an additional 2,574 BTCs worth $50 million.
As a reminder, due to the plans to issue convertible bonds, Citi analysts have lowered recommendations on shares of MicroStrategy Inc., after which their price went down sharply.