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MicroStrategy Completes Offer of $ 1.05 billion in IOUs for Bitcoin Purchase

Key facts:

MicroStrategy continues with its bitcoin investment plan, started in August 2020.

With the money raised, MicroStrategy would acquire about 20,000 BTC.

Michael Saylor, CEO of MicroStrategy announced that this firm completed a new debt issue through convertible notes or promissory notes, for the acquisition of approximately 20,000 BTC.

Saylor published a press release on Twitter this Friday, February 19, in which he announced the completion of the new debt issuance, for a total of USD 1,050 million. This new offer of promissory notes had been announced last Wednesday, February 16, a fact reported by CriptoNoticias.

Although a USD 900 million debt issuance was initially announced, an additional USD 150 million was included to cover additional requests for convertible notes by those who acquired at the beginning of the process.

The company has been acquiring bitcoin since August 2020, as part of its treasury management strategy. The initial purchase of 20,000 BTC was followed by subsequent acquisitions that led the company to close 2020 with almost $ 20 billion invested in bitcoin.

In addition to being the first public company to target its BTC acquisitions for its treasury reserve, MicroStrategy also announced in mid-December its first issuance of promissory notes for the purchase of bitcoin. Initially announced for an amount of USD 400,000 million, this first debt issuance was completed for an amount 62.5% higher, of USD 650 million, as reported by this medium.

The company has approximately 72,000 BTC, according to that firm’s latest notification to the United States Securities and Exchange Commission (SEC). Depending on how the purchase of the new BTCs was planned and the price variation since this Thursday, when the debt issuance was completed, MicroStrategy would be adding between 18,000 and 21,000 additional BTC to the existing ones. This would amount to a minimum of 90,000 BTC in total as part of MicroStrategy’s strategic reserve.

The progress of MicroStrategy’s share value, after the bitcoin acquisition started, it is revealed as a positive market perception of that company’s strategy.

At the time of the first bitcoin acquisition, in mid-August, MicroStrategy’s stock, in Google figures, was priced at USD 140. The share closed 2020 with 177% appreciation, at a value of USD 388 , and reflects this Friday a return so far this year, of 150%. Its price, at the time of writing, is USD 971.