MicroStrategy to offer $400 Million in notes to buy more Bitcoin
|Toronto Star 07 Jun 2021 at 17:17|
Shares of the Tysons Corner, Va., analytics software and services provider were off 1 per cent to $479.66 in trading Monday.
MicroStrategy said in a statement that it “intends to use the net proceeds from the sale of the notes to acquire additional Bitcoins.”
The notes will be guaranteed by MicroStrategy Services Corp., a subsidiary of MicroStrategy, and certain subsidiaries of MicroStrategy that may be formed or acquired after the closing of the offering.
MicroStrategy said its existing roughly 92,079 Bitcoins will be held by a newly formed subsidiary, MacroStrategy LLC.
Cryptocurrency prices tumbled last month following a statement from the People’s Bank of China that the digital coins weren’t “real currencies” and amid a general market pullback. China reiterated a call for a crackdown on Bitcoin mining and trading.
MicroStrategy CEO Michael Saylor recently described Bitcoin as “the most efficient use of energy the human race has come up with.”
Last month, Saylor announced on Twitter that the company had purchased an additional 229 Bitcoin for $10 million at the average price of $43,663.
The purchase occurred after Tesla (TSLA) CEO Elon Musk hinted that his clean-energy car company could sell all of its holdings in the digital currency.
MicroStrategy disclosed in March that disclosed it spent $15 million to buy 262 bitcoins, an average $57,146 per coin including fees. The company bought another 19,452 bitcoin, for $1.03 billion in February.
Earlier this year, Saylor told Bloomberg that he was considering issuing more debt in order to help finance the company’s purchase of Bitcoin as part of its corporate strategy.