MicroStrategy Inc. is planning to use the proceeds of a $600 million convertible bond sale to purchase more Bitcoin, according to a press release. The notes are scheduled to mature on Feb. 15, 2027, unless converted, repurchased, or redeemed before then. The firm already owns 72,000 Bitcoin (BTC) worth $3.6 billion. MicroStrategy to Raise More Funds to Increase its Bitcoin Holdings Enterprise software provider company, MicroStrategy will raise more funds in order to increase its Bitcoin holdings. In December 2020, MicroStrategy raised funds in a similar manner to purchase 70,470 bitcoins for $1.125 billion. The amount has now multiplied to more than $3.5 billion following the cryptocurrency touching a new ATH of $50,000. The newly multiplied fund indicates more than one-third of MicroStrategy’s market cap of $9.9 billion as of Feb. 16. In a statement, the company stated: “The notes will be unsecured, senior obligations of MicroStrategy, and will bear interest payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2021. The notes will mature on February 15, 2027, unless earlier repurchased, redeemed, or converted in accordance with their terms.” Meanwhile, the shares of MicroStrategy fell over 7% on Feb. 16 after the announcement was made public. Overall the shares have skyrocketed to over 605% in the past six months amid Bitcoin’s increasing prices. MicroStrategy has previously sold debts worth more than $650 million for the purpose of purchasing Bitcoin. MicroStrategy’s Shares Rose by 580% Since BTC Purchase The publicly-listed company’s share price shot up by approximately 580% as its Bitcoin purchases turned into a profitable one. For instance, the price of BTC rose from $11,000 in August, when it made its first crypto purchase via Coinbase’s institutional service to the current valuation of BTC at approx $50,000. In 2020, the company bought an aggregate of 70,470 bitcoins, which were acquired at an aggregate cost of $1.1 billion or an average purchase price of $15,964 per coin. MicroStrategy’s market cap stands at $9.15 billion as of Feb. 16, signifying that the company places nearly 40% of its net value in Bitcoin.
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