MicroStrategy Inc. said it’s raising $400 million through a debt offering as part of its pursuit to acquire more Bitcoin.
The Tysons Corner, Virginia-based enterprise software
company said in a filing Monday the firm is offering senior secured notes that
will be available to qualified institutional buyers. MicroStrategy has, with
Michael Saylor at its helm, emerged as one of the most bullish public companies
on cryptocurrencies.
MicroStrategy is marketing the offering through
Tuesday, and pricing is expected thereafter, according to a person with
knowledge of the matter. Jefferies Financial Group Inc. is the sole bookrunner
on the deal, said the person, who asked not to be identified as the details are
private.
Saylor has been one of leading advocates of converting
company cash to Bitcoin, saying that that the Federal Reserve’s relaxing of its
inflation policy helped convince him to invest MicroStrategy’s reserves.
Earlier this year, Tesla Inc. surfaced as one of the few mainstream companies
to follow such a move but its CEO, Elon Musk, has since then raised issues over
Bitcoin’s environmental impact.
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. The company has also issued
convertible bonds in its quest to scoop up more of the cryptocurrency.
In mid-May, the MicroStrategy disclosed that it holds
approximately 92,079 Bitcoins, which it says were acquired for about $2.25
billion at an average of about $24,450 per token. Monday’s filing shows the
company’s existing cache of Bitcoins will be held by a newly formed subsidiary
called MacroStrategy LLC.
Source: Bloomberg
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