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MicroStrategy plans to raise $400 million debt to buy more bitcoin

Microstrategy to raise USD 400 million buy more bitcoin

Business

MicroStrategy plans to raise $400 million debt to buy more bitcoin

US-based enterprise analytics firm, MicroStrategy Inc on Monday announced its plan to raise $400 million via senior secured notes-a type of debt offering-in a private offering and use the net proceeds to buy more bitcoin. The Michael Saylor-led company would guarantee the new notes and secure them with the bitcoin that it would acquire.



“The notes will be fully and unconditionally guaranteed on a senior secured basis, jointly and severally, by MicroStrategy Services Corporation, a wholly-owned subsidiary of MicroStrategy, and certain subsidiaries of MicroStrategy that may be formed or acquired after the closing of the offering,” said MicroStrategy.

The company currently holds more than 92K coins with a worth of around $3.37 billion at current prices. MicroStrategy’s holdings at one point surged above $5 billion, but they’re now worth approximately $3.4 billion. The shares of the company had tumbled nearly 55% from a two-decade high in February. The downward spiral began after shares of bitcoin plummeted after Tesla CEO Elon Musk remark that the price of the cryptocurrency seemed “a little high,” fueling concerns among experts that the token’s volatility makes it an unreliable store of value.


Also Read: El Salvador keen to make Bitcoin a legal tender


MicroStrategy (Nasdaq: MSTR) is the largest independent publicly-traded analytics and business intelligence company. The MicroStrategy analytics platform is consistently rated as the best in enterprise analytics and is used by many of the world’s most admired brands in the Fortune Global 500.


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