MicroStrategy Succeeds in Raising $500M to Buy More BTC
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Software company MicroStrategy has announced the completion of its $500 million plan to sell secured notes and use the proceeds to buy additional BTC.
MicroStrategy made quick work of their recent fundraising plan to raise money to purchase more BTC. The money raised totals around $488 million after expenses and commissions.
As we reported last week, MicroStrategy announced its plans to sell $400 million of senior secured notes that are due by 2028 with an annual interest rate of 6.125%. They quickly upped that total to $500 million two days later due to the massive interest garnered.
According to Business Insider, the sale received more than $1.5 billion in orders with many coming from large hedge funds. Clearly, despite the recent price dip, major investors are still clamoring to get more cryptocurrency as notes flew off the shelves.
The notes purchased are “fully and unconditionally guaranteed on a senior secured basis, jointly and severally,” according to the release by MicroStrategy.
MicroStrategy buying all the BTC it can
MicroStrategy has been on a BTC spending spree so far in 2021, snatching up 20,857 BTC during the first quarter of the year at an average price of $52,087. The Virginia-based company now owns around $3.5 billion in BTC. The next $500 million spend falls right in line with the plan for MicroStrategy that CEO Michael Saylor has laid out.
That plan is to buy and hold BTC to create additional value for their shareholders. The company first invested in BTC back in 2020 and the price has since risen over 400%.
If MicroStrategy chooses to buy immediately, at the current price of $40,955, the company will be able to purchase an additional 11,903. With the current holdings sitting at 92,079, this would bring MicroStrategy’s total bitcoins to right around 104,000.
As of this writing, shares in MicroStrategy are on the rise, up 12.57% in the last 24 hours. Its current market cap is hovering right around $5.68 billion, with approximately $3.5 billion of that being BTC.
The post MicroStrategy Succeeds in Raising $500M to Buy More BTC appeared first on BeInCrypto.
