MicroStrategy Raises $900 Million to Buy More Bitcoin

After announcing on Tuesday that MicroStrategy planned to purchase $600 million in Bitcoin (BTC) through the sale of convertible bonds, the business intelligence firm has increased the amount by another $300 million.

MicroStrategy said Wednesday it will sell $900 million of convertible senior notes due in 2027 to qualified institutional buyers in a private placement. The proceeds from the sale will be about $879 million, according to the company's estimates. But it added that "if the initial purchasers fully exercise their option to purchase additional notes, the sale could amount to as much as $1 billion."

The business intelligence firm said it expects to close the offering on Friday, at which time it will “purchase additional bitcoin.” With the price of bitcoin hitting a new all-time high of $51,000 on Wednesday, MicroStrategy’s coffers could soon have 19,000 more BTC in their coffers.

MicroStrategy’s initial $250 million Bitcoin investment in August 2020 has more than doubled given the asset’s recent bull run. Since then, the business intelligence company has purchased 16,796 BTC for $175 million in September 2020, and then 29,646 BTC for $650 million through a bond offering in December 2020. Additionally, the company purchased 314 BTC for $10 million in late January and 295 BTC for $10 million earlier this month.

If the purchase goes as planned, the business intelligence company will hold more than $3.5 billion in crypto assets in its reserves, or about 90,000 BTC. This means that the company will control 0.48% of the circulating supply of Bitcoin. (Cointekegraph)