Analytical software provider MicroStrategy Inc. has announced the next round of sales of $600 million of convertible bonds maturing in 2027.
The buyers of the securities will be accredited investors. The company will use the funds to buy Bitcoins.
MicroStrategy will offer convertible notes without collateral. Interest on them will be paid every six months, starting in August 2021.
The maturity date will come on February 15, 2027, if the company does not buy back or convert the securities earlier. After February 20, 2024, MicroStrategy may buy back all or part of the notes.
The securities will be converted into cash, Class A ordinary shares, or a combination of these assets.
MicroStrategy also plans to give initial bond buyers a buy option within 13 days of the first issue. It includes additional notes of up to $90 million. The company said that the final offer depends on a number of conditions.
— Michael Saylor (@michael_saylor) February 16, 2021
The price of Bitcoin has updated the historical all time high, breaking the $50,000 mark.
In December 2020, the MicroStrategy announced its intention to raise $400 million for additional investments in digital gold (BTC) through a bond offering. MicroStrategy later raised the offer to $550 million.
Recall that in February 2021, the MicroStrategy additionally purchased 295 BTC with a total value of $10 million. In total, MicroStrategy owned 71,079 BTC.