MicroStrategy to Sell $400 Million Worth of Notes for Bitcoins

MicroStrategy Inc, an enterprise analytics and mobility software provider, is going to sell $400 million worth of senior secured notes in a private offering to institutional buyers to borrow money for more bitcoins. 

Claims of noteholders of the new notes due in 2028 will be assured by the business and "any bitcoins or other digital assets" acquired after the closure of the fundraising. 

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"The notes will be fully and unconditionally guaranteed on a senior secured basis, jointly and severally, by Microstrategy Services Corporation, a wholly-owned subsidiary of Microstrategy, and certain subsidiaries of Microstrategy that may be formed or acquired after the closing of the offering," MicroStrategy detailed.

This is the company’s third bond sale to hoard more Bitcoins. With the strong believe that digital assets will outperform cash, MicroStrategy last August bought $250 million worth of Bitcoin for the first time and sold a total of $1.6 billion in convertible bonds last year to buy more. It has started the trend of adding Bitcoin to the balance sheets, which pushed companies like Tesla and several other public companies to do the same. However, MicroStrategy’s core business in selling data analytics software and services hardly showed any growth in a decade.

MicroStrategy now holds more than 92,000 Bitcoins, and the fresh purchase will take the total count to more than 100,000 Bitcoins, based on the current prices.