MicroStrategy, the world’s largest listed business intelligence company, has announced plans to invest its $ 400 million in Bitcoin revenue.
On December 7, the company announced plans to issue $ 400 million in convertible bonds that can be converted into issued shares in the company. The ad said:
Microstrategy intends to invest the net income from the sale of Bitcoin bills.
At current prices, $ 400 million will increase the company’s holdings by 20,833, bringing the total volume of the company’s cryptocurrency to nearly 62,000 BTC.
Microstrategy will pay the banknote holders half-yearly interest until December 2025. The company also reserves the right to redeem banknotes in cash from 20 December 2023.
The announcement states that MicroStrategy can also offer its first customers up to an additional $ 60 million in banknotes within 13 days of launch.
The securities will be issued in accordance with the Securities Act § 144 and will only be available to qualified institutional investors.
In response to MicroStrategy’s announcement, Gabor Gurbax, CEO of New York-based investment firm VanEck, suggested that the proposal was more about a digital asset fund than a public company:
MicroStrategy made a splash in the cryptocurrency world in August when the company announced that it had used Bitcoin as its main reserve capital after buying 21,454 BTC for $ 250 million. So next month, he bought another $ 16,796 BTC for $ 175 million. The purchases were made through the broker and trading platform Coinbase.
Just a few days ago, on December 5, MicroStrategy CEO Michael Sailor announced that it had purchased an additional 2,574 BTC at around $ 19,427 each for $ 50 million, bringing its total holdings of cryptocurrencies to around $ 40,824 BTC.
At current market value, BTC MicroStrategy is valued at approximately $ 784 million, which means that the company has now increased its investments by $ 475 million by 65%.