MicroStrategy completes $500 million offering, plans to buy more Bitcoin

Bitcoin • June 14, 2021, 9:46AM EDT
UPDATED: June 14, 2021, 10:33AM EDT
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Software company MicroStrategy has today completed its $500 million offering of secured notes, according to a statement. The company said it plans to use the proceeds, which it estimates at $488 million — after discounts, comissions and expenses — to buy more bitcoin.

The offering was of secured notes due 2028 that bear interest at an annual rate of 6.125%.

The company already holds 92,079 bitcoin, which is under the purview of its newly formed subsidiary MacroStrategy. The price of bitcoin is currently $40,700, suggesting that MicroStrategy will be able to buy around 11,990 more bitcoin, taking it well above the 100,000 mark.

MicroStrategy announced this latest offering on June 7, initially planning to raise $400 million before it was upped to $500 million. According to reports, the company had more than $1.6 billion worth of orders for the notes, "including interest from a large number of hedge funds."

 

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Tim Copeland profile picture Tim Copeland

Tim Copeland is the Head of Growth at The Block and host of The Crypto Beat, a live-streaming podcast. He was previously the company's Editor-in-Chief and spent seven years covering the industry as a journalist. Prior to joining The Block, Tim was a news editor at Decrypt. He earned a bachelor's degree in philosophy from the University of York and studied news journalism at Press Association Training. Follow him on X @Timccopeland.

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