MicroStrategy announced through a press release on February 17 that it plans to issue $ 900 million instead of $ 600, adding $ 300 million to the novel debt issuance model to buy more Bitcoin. The firm stated that it will offer convertible notes that will expire on February 15, 2027.
The business intelligence company initially set a goal of $ 600 million when it announced its plan to buy more Bitcoin before raising its offer to $ 900 million and could invest another $ 150 million in the digital currency if its initial buyers decide to get an additional batch of banknotes.
Michael Saylor, CEO of the company and longtime Bitcoin fan, revealed that the proceeds from the offering will be approximately $ 879.3 million and will be invested in purchases of Bitcoin as the cryptocurrency exceeds $ 50,000 in his last rally.
MicroStrategy's $ 900 million loan to buy bitcoin it has again strengthened the already speculative notion of the company attacking the US dollar. The company is rumored to be issuing cheap debt to store Bitcoin in hopes of an uneven return if the value of the coin continues to rise.
However, reports suggest that its CEO has directed the company to adopt two distinct business models: developing business intelligence software and buying more and more Bitcoin as it is expected to continue its upward trajectory.
MicroStrategy is the world's largest publicly traded business intelligence company and spent the latter stages of last year investing in cryptocurrencies as it made its first purchase of 21,454 BTC on August 11, 2020. Arguably the company converted into one of the mighty bulls of BTC after its purchase and somehow fueled the new wave of institutional interest from publicly traded companies in the United States and around the world.
MicroStrategy's initial purchase of 21,454 BTC was worth $ 250 million at the time, as the company followed it up with several investments that brought its BTC Holdings to $ 70,470 BTC, all purchased at a combined rate of $ 1,125 billion.
The company's BTC holdings are now worth around $ 3.6 billion, more than doubling growth in value since its first BTC purchase. Following the digital currency surge at the end of December, Microstrategy's BTC holding increased to $ 2.4 billion, representing growth of more than 100% since August.