MicroStrategy Plans to Invest another $ 400 Million in Bitcoin

Kataryna Habeliia December 8, 2020

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MicroStrategy plans to invest another $ 400 million in bitcoin

MicroStrategy has announced plans to invest $ 400 million in proceeds from the placement of securities in bitcoin.

On December 7, the company announced plans to issue $ 400 million in senior convertible notes.

“Microstrategy intends to invest net proceeds from the sale of notes in Bitcoin,” — it said in a released statement.

At current prices, the company can acquire 20,833 BTC for $ 400 million. Given this purchase, the company will own almost 62,000 BTC.

Microstrategy will pay interest to noteholders until December 2025. The company reserves the right to redeem bonds from December 20, 2023. The securities will be issued in accordance with US securities law and will only be available to qualify institutional investors.

Microstrategy already owns 40,824 BTC

In August, MicroStrategy announced the purchase of 21,454 BTC for $ 250 million as part of its capital allocation strategy. Later, the company acquired another 16,796 BTC for $ 175 million. The purchases were made through the brokerage platform of the American crypto exchange Coinbase.

Last week, the company`s CEO Michael Sailor said the company acquired another 2,574 BTC for $ 50 million at an average price of $ 19,427. The company currently owns 40,824 BTC worth almost $ 784 million at current prices.

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