MicroStrategy Offers USD 400M Bitcoin Market Test
One of the most bullish non-crypto companies, US-based software developer MicroStrategy is putting the markets to the test – they’re planning to raise more money in order to purchase more bitcoin (BTC).
MicroStrategy has announced today a proposed private offering of USD 400m of senior secured notes sue 2028 to qualified institutional buyers and to persons outside of the United States.
“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoins. […] MicroStrategy’s existing approximately 92,079 bitcoins will be held by a newly formed subsidiary, MacroStrategy LLC,” they said.
This amount of BTC is currently worth nearly USD 3.38bn. At 13:15 UTC, BTC is trading at USD 36,680, having appreciated 2% in a day and almost 3% in a week.
The notes will be fully and unconditionally guaranteed on a senior secured basis by MicroStrategy Services Corporation, which is a wholly-owned subsidiary of MicroStrategy, as well as certain subsidiaries of MicroStrategy that may be formed or acquired after the closing of the offering, it added.
Furthermore, the notes and the related guarantees will be secured by security interests on substantially all of MicroStrategy’s and the guarantors’ assets, including any bitcoins or other digital assets acquired on or after the closing of the offering, but this does not include MicroStrategy’s existing BTC nor the BTC and digital assets acquired with the proceeds from existing BTC, the company stressed.
The announcement and the subsequent purchase may prove to be quite important, given that they may serve as a test for the market and whether investors are willing to invest in BTC after a sharp correction this past spring.
As reported, on May 13, MicroStrategy said it purchased an additional BTC 271 for USD 15m in cash at an average price of USD 55,387 per BTC.