Business intelligence firm MicroStrategy has completed a $650 million debt offering of 0.750 percent convertible senior notes, according to its Dec. 11 press release:
The aggregate principal amount of the notes sold in the offering was $650 million, which includes notes issuable pursuant to an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $100 million aggregate principal amount of the notes granted to the initial purchaser of the notes, which the initial purchaser exercised in full on December 9, 2020 and which additional purchase was also completed today.
The publicly-listed company intends to put all the net proceeds ($634.9 million) into Bitcoin, the world's largest cryptocurrency that acts as its primary reserve asset.
Alex DovbnyaUpping the ante
MicroStrategy initially announced its plan to issue $400 million in securities on Dec. 8. As reported by U.Today, the move prompted Citibank analyst Tyler Radke to downgrade its stock due to the firm's "disproportional focus" on Bitcoin.
Not deterred by this skepticism, MicroStrategy boosted its offering to $550 million and then ended up raising the aforementioned $650 million sum.
As noted by Coin Metrics co-founder Nic Carter, MicroStrategy launched a speculative attack on the U.S. dollar by using debt instruments to pile up hundreds of millions worth of Bitcoin.
The Michael Saylor-helmed firm already owns 40,824 BTC (roughly $732 million at press time). This represents 0.194 percent of the cryptocurrency's total supply.
Dan Burgin
Vladislav Sopov