MicroStrategy, the leading business intelligence firm, is thinking about increasing its Bitcoin allocation as the company is raising a massive amount of funds, which it plans to use for purchasing more BTC. It will raise these funds by issuing convertible notes. MicroStrategy has already allocated a massive amount of Bitcoin.
MicroStrategy To Raise $900 Million
The business intelligence company issued a press release on the 17th of February to announce its plans. The company said that it is going to raise an amount of $900 by conducting the issuance of senior convertible notes. While announcing the offering’s pricing, the company said that the offering would close on the 19th of February, 2021.
MicroStrategy said that it would sell these convertible notes to only those institutional investors that are qualified, and the sale will occur through a private offering under the Securities Act (which is also known as the 1933 Securities Act). Those who will initially purchase notes will be provided with an opportunity to purchase an extra up to $150 million as well.
Furthermore, the company said that these notes are set to get mature on the 15th of February in 2027 unless they are repurchased or converted earlier as per the outlined term and conditions. Moreover, there will be no regular interest in these convertible notes, the firm said in its official blog post.
The move of MicroStrategy shows that the intentions of the company are clear regarding the extra purchase of BTC as the firm has said that it will allocate all of the raised funds into the leading digital currency.
As per some reports, the company initially announced that it was going to raise only $600 million, but now it has extended its target to $900 million, increasing the amount by around 50 percent.
So far now, it has made many separate purchases, and now, the company holds more than $1 billion worth of the pioneering digital currency. It started investing in Bitcoin last year when it first bought $250 million worth of Bitcoin (BTC). After that, it continued to invest in the major digital currency.
This announcement of MicroStrategy has come at a time when the top-ranked digital currency has registered a new all-time high by breaking above the figure of $52k a few hours ago.