MicroStrategy Plans to Offer $400 Million of Senior Secured Notes

News / 08.06.2021

MicroStrategy recently made public plans to offer $400 million worth of senior secured notes to purchase additional bitcoins. The company, founded in 1989, would be acquiring its third security debt offering with over $2 billion worth of Bitcoin invested through credit raised from the sale of convertible security tokens and direct cash purchases.

The fortune 500 company intends to offer senior secured notes due 2028. However, it will depend on market conditions like volatility, among others. The company has no assurance on the details about its completion. According to a filing on Monday, the company said that the senior secured notes would be available to eligible institutional buyers.

MicroStrategy to Increase Bitcoin Investment

The company has only bought bitcoins for almost 10 months, and they have managed to raise over $1.5 billion in security offers to purchase bitcoin. MicroStrategy has set the pace for the Fortune 500 companies by currently holding 92,079 BTC as a store of value together with a net investment of $2.251 billion.

Unlike other public listed companies that only make a one-time investment and just a few have managed to sell their holding with colossal profits, MicroStrategy has no plans to stop buying bitcoins.

Even as their bitcoin profits more than doubled last month when its price reached an all-time high of $64,683, the CEO of the firm Michael Saylor still showed no intention of selling.

Profit Valuation

With a market cap of US$4.7 billion, all bitcoins from MicroStrategy will be held by MacroStrategy LLC, a newly formed subsidiary of MicroStrategy. And their entire bitcoins stand at $3.37 billion, which garners them more than $1 billion in profits. A bold move that has exceeded the company’s profits from all their products combined.

The largest independent publicly traded analytic and business intelligence company pursues two strategies of growing its enterprise analytics software business to promote its vision of Intelligence Everywhere and acquire and hold Bitcoin.

That is why according to the latest report from Ventana Research, the the2021 Value Index for Analytics & Data classifies the financial institution as an exemplary vendor and an overall value index leader as well as a Value Index Leader in product experience.

Despite the odds of going against the depleting value of the US dollar, MicroStrategy was among the first companies to circulate the use of bitcoin as a treasury reserve, and they turned out great. For that reason, Saylor, the big-time Bitcoin proponent, revealed that his entire entities hold a total of 110,000 BTC without selling any.

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Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.