US-based leading business intelligence firm MicroStrategy announced that it is planning to offer around $400 million in securities to invest the net proceeds in Bitcoin. The company aims to increase its BTC portfolio by more than 100%.
According to the official press release, the firm intends to issue convertible senior notes in a private offering to qualified investors. The company states that the notes will mature on 15 December 2025, unless converted earlier or redeemed.
MicroStrategy filed a document with the SEC on 4 December and revealed that the company recently bought $50 million worth of Bitcoin to increase its portfolio to over 40,000 BTC. At the current market rate, MicroStrategy would be able to buy around 21,000 BTC with $400 million to increase its total number to nearly 62,000 Bitcoin.
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“MicroStrategy intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its Treasury Reserve Policy pending the identification of working capital needs and other general corporate purposes,” the official press release states.
Additionally, the firm mentioned that the notes will be convertible into cash or a combination of MicroStrategy’s class A common stock and cash. The securities will be sold only to qualified institutional buyers pursuant to Rule 144a under the Securities Act. MicroStrategy is the third-largest institutional crypto holder in the US behind Grayscale Bitcoin Trust and Block.one.
“The notes will be convertible into cash, shares of MicroStrategy’s class A common stock, or a combination of cash and shares of MicroStrategy’s class A common stock, at MicroStrategy’s election. Prior to June 15, 2025, the notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day immediately preceding the maturity date. The interest rate, conversion rate, conversion price and certain other terms of the notes will be determined at the time of pricing of the offering,” the company added.