MicroStrategy to invest $900M from convertible senior notes into Bitcoin

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If the purchase goes as expected, the business intelligence company will retain more than $3.5 billion in Bitcoin as a reserve asset.

Following Tuesday’s announcement that MicroStrategy is preparing to purchase $600 million in Bitcoin (BTC) through the selling of convertible notes, the business intelligence company has increased the ante by another $300 million.

MicroStrategy said on Wednesday that it will sell $900 million in convertible senior notes due in 2027 in a private offering to interested institutional purchasers. According to the company’s figures, the proceeds from the sale would be approximately $879 million. It added, however, that it could be as high as $1 billion “if the initial purchasers fully exercise their option to purchase additional notes.”

The business intelligence firm said it planned to close the offering on Friday, at which time it will “acquire additional Bitcoin.” With the price of Bitcoin hitting an all-time high of more than $51,000 on Wednesday, MicroStrategy could soon have an additional BTC of 19,000.

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MicroStrategy’s initial $250 million Bitcoin investment in August 2020 has more than doubled, following the recent bull run of the crypto asset. The business intelligence company has since acquired BTC 16,796 for $175 million in September 2020, followed by BTC 29,646 for $650 million in December 2020. In addition, the company purchased 314 Bitcoin for $10 million at the end of January, and 295 BTC for $10 million earlier this month.

If the purchase is made according to schedule, the business intelligence company will keep more than $3.5 billion of the crypto asset in its reserves, or approximately BTC 90,000. This will mean that the firm would hold 0.48 per cent of Bitcoin’s circulating supply.


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