Microstrategy will soon hold more than 100,000 bitcoins in its treasury. The company is raising $400 million by selling senior secured notes and will use the proceeds to acquire additional bitcoins.
Microstrategy Acquiring More Bitcoin
Microstrategy Inc. (Nasdaq: MSTR) announced Monday it intends to offer $400 million of â€œsenior secured notes due 2028â€ in a private offering to qualified institutional buyers. The company detailed:
The company further explained that â€œThe notes and the related guarantees will be secured, on a senior secured basis with Microstrategyâ€™s existing and future senior indebtedness, by security interests on substantially all of Microstrategyâ€™s and the guarantorsâ€™ assets, including any bitcoins or other digital assets acquired on or after the closing of the offering.â€
However, â€œexisting bitcoins as well as bitcoins and digital assets acquired with the proceeds from existing bitcoinsâ€ will not be used to secure the notes, Microstrategy clarified, elaborating:
At bitcoinâ€™s current price of $36,116 at the time of writing, Microstrategyâ€™s $400 million would acquire over 11,075 BTC. That means the companyâ€™s cryptocurrency stash would grow to more than 103,154 bitcoins.
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