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MicroStrategy completes its $1.05 billion debt offering, to buy more Bitcoin

Alisha Roy

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Publicly traded company MicroStrategy announced the completion of $1.05 billion offering of convertible senior notes, thus allowing the firm to invest the aforementioned amount into Bitcoin.

MicroStrategy sold the notes in a private offering to qualified institutional buyers on “Rule 144A under the Securities Act.” 

On 16 February, MicroStrategy decided to offer $600 million worth of convertible senior notes to qualified institutional buyers, and use the net proceeds from the sale of the notes to acquire additional Bitcoins. 

Initial investors of the notes also had the option to purchase another $90 million worth of the notes, which MicroStrategy could use to buy more of the digital asset. 

The amount of notes sold in the offering, which was $1.05 billion, includes $150 million worth of notes “issued pursuant to an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued.” The initial purchases were exercised on 18 February and the additional purchase was completed today. 

As mentioned before, the company stressed that the notes will be convertible into cash or shares of MicroStrategy’s stock. It can also be convertible into a combination of cash and shares of MicroStrategy’s “class A common stock, at MicroStrategy’s election.”

To date, the business intelligence firm holds 71,079 BTC, which makes the company, the largest purchaser of the asset. 

At press time, Bitcoin was trading at a new ATH of $54,067.83 with a one-hour spike of 1.1%. At the same time, Bitcoin’s market cap reached $1 trillion for the first time in the asset’s history.


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Alisha is a full-time journalist at AMBCrypto. Her interests lie in blockchain technology, crypto-crimes, and market developments in Africa and the United States