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MicroStrategy prepares to buy more Bitcoins

Pioneering business intelligence company MicroStrategy (MSTR) has announced it has raised $ 650 million to buy more Bitcoins from convertible bonds, highlighting CEO Michael Saylor’s faith in the largest digital asset.

MicroStrategy confirmed on Friday that it had sold $ 650 million worth of convertible priority bonds with a 2025 term at 0.750 percent interest. December June 15 and December 15 interest can be paid twice a year from 2021.

The press release stated::

“MICROSTRATEGY PLANS TO INVEST THE NET PROCEEDS FROM THE SALE OF BONDS IN BITCOIN IN ACCORDANCE WITH TREASURY RESERVE POLICY.”

Securities issued under Rule 144A of the Securities Act of 1933 will be made available only to institutional investors.

MicroStrategy originally planned to generate $ 400 million from these sales. With $ 650 million, the company can buy more than 36,300 Bitcoins at the current exchange rate.

MicroStrategy has caused a sensation in recent months by announcing plans to turn much of its balance sheet into Bitcoin.

The company currently has 40,824 Bitcoins worth over $ 734 million. The company made almost $ 260 million when it first bought Bitcoin.

Wall Street analysts are concerned that MicroStrategy May over-invest in Bitcoin over the past few months, which scares most institutional investors because of its high volatility. Citibank recently downgraded the company’s shares because of its “disproportionate” focus on Bitcoin.

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