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MicroStrategy announces $400 million private senior secured notes offering


MicroStrategy is proposing a private offering of $400 million senior secured notes. The notes will be secured by the company’s interests in assets such as Bitcoin or other digital currencies purchased after the end of the offering.

MicroStrategy to raise $400 million from senior secured notes

Michael Saylor-led MicroStrategy is one of the biggest investors in Bitcoin. The company currently holds billions of dollars in bitcoins and could be planning to buy more from the funds it wants to raise from investors.

MicroStrategy announced earlier today that it intends to offer $400 million worth of senior secured notes to private investors. In its blog post, MicroStrategy said, “MicroStrategy® Incorporated (Nasdaq: MSTR) (“MicroStrategy”) today announced that it intends to offer, subject to market conditions and other factors, $400 million aggregate principal amount of senior secured notes due 2028 (the “notes”) in a private offering to qualified institutional buyers.”

The private offering will be available to investors outside the United States, and it is subject to market and other conditions. The notes will be guaranteed by MicroStrategy Services Corporation, a MicroStrategy subsidiary.

MicroStrategy to use funds to purchase more bitcoins

Although it is one of the largest holders of Bitcoin, MicroStrategy intends to buy more with the funds obtained from the senior secured notes. “MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoins,” the company said.

The private investors will enjoy the security interests on MicroStrategy’s assets, including the bitcoins it would purchase with the funds. “The notes and the related guarantees will be secured, on a senior secured basis with MicroStrategy’s existing and future senior indebtedness, by security interests on substantially all of MicroStrategy’s and the guarantors’ assets, including any bitcoins or other digital assets acquired on or after the closing of the offering,” the blog post added.

However, MicroStrategy said the security doesn’t include MicroStrategy’s existing bitcoins and bitcoins and digital assets purchased with the proceeds from existing bitcoins. MicroStrategy holds approximately 92,079 bitcoins ($3.37 billion in BTC’s current price).

MicroStrategy is one of the most Bitcoin bullish corporate entities in the world. With Elon Musk and Tesla all negative about Bitcoin in recent months, MicroStrategy has increased its efforts in the market. It is the publicly-listed company with the largest Bitcoin holdings, and Michael Saylor is keen to purchase more bitcoins.

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