MicroStrategy, the US-based business intelligence firm, plans to roll out a $400 million in securities to purchase more bitcoin, media reports said. It is reported that the company will roll out debt security that can be converted into the issuing company’s shares.
The new securities are expected to ramp up the company’s holdings by 20,833 at current prices which will also boost the company’s crypto stash.
It is reported that the company will also pay semi-annual interest to the note-holders until December 2025. Furthermore, MicroStrategy has the right to redeem the notes for cash from Dec. 2023.
It is reported that the company also may provide an additional note worth $60 million to its initial purchase within 13 days of embarking on the offering.
The securities will only be provided to qualified institutional investors and will be rolled out under Rule 144 of the Securities Act.
The company surprised the global crypto market when it unveiled adapting Bitcoin as its primary reserve asset after acquiring 21,454. The company acquired a further 16,796 BTC the following month. Coinbase’s OTC and brokerage platform were used to complete the purchase.
The company’s CEO Michael Saylor said that MicroStrategy, has acquired 2,574 BTC worth $50 million few days ago.
The company told the media, “MicroStrategy intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its Treasury Reserve Policy pending the identification of working capital needs and other general corporate purposes.”
The global bitcoin industry is flourishing amid the pandemic