MicroStrategy Will Circulate Debt Securities Worth $400 Million to Purchase More Bitcoin

December 8, 2020 2:00 PM UTC


MicroStrategy has made several headlines in the crypto sphere for its multi-million Bitcoin investment. According to the December 7 announcement, the firm is planning to sell $400 million convertible senior notes in order to purchase more Bitcoin.

The note is an exchangeable debt security that enables the holder to convert the note value into cash. Holders will receive semi-annual interest until December 2025. However, the firm reserves the right to purchase the notes in cash in December 2023.

Based on an official press briefing, “MicroStrategy intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its Treasury Reserve Policy pending the identification of working capital needs and other general corporate purposes.”

MicroStrategy Selected Coinbase as Execution Partner

MicroStrategy entered the crypto market by investing almost $425 million in the digital asset. The business intelligence giant selected the US-based cryptocurrency exchange Coinbase as the primary execution partner for a Bitcoin purchase. 

In August 2020, MicroStrategy initially invested almost $250 million in Bitcoin. Just a month later, the firm additionally poured over $175 million into the asset. Recently, it purchased almost 2,754 BTC on December 4, bringing MicroStrategy’s total holdings to 40,824 BTC, worth $784 million at current market value.

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