Business intelligence company Microstrategy has completed its $500 million offering of secure notes, and said it plans to use the proceeds to buy bitcoin.
In Monday’s announcement, Microstrategy said it had sold $500 million worth of senior secured notes in a private offering to buyers within and outside the United States. After deducting expenses, initial buyer discounts and commissions, the firm said net income was approximately $488 million, which it intends to use to purchase bitcoin (BTC).
Since announcing its first $250 million BTC purchase in August 2020, MicroStrategy has made several major bitcoin purchases. At the time of publication, MacroStrategy, a subsidiary of the firm, currently holds 92,079 BTC – roughly $3.8 billion.
If the price of the crypto asset stays near its current price of $40,936, the company is likely to buy around 11,913 BTC. This would mean that its total bitcoin holdings would exceed $4.2 billion.
related: MicroStrategy stock slides after announcing new $400M loan increase to buy bitcoin
MicroStrategy announced the private offering on June 7, initially stating that “the private offering intends to raise the total principal amount of senior secured notes $400 million,” later adding that it would expand the offering to $500 million. will increase. The company reportedly saw orders worth more than $1.6 billion for the offering – four times the initial amount.