MicroStrategy will sell bonds to buy Bitcoin

This February 16, the investment firm MicroStrategy, announced the sale of $ 600 million in bonds to invest this money in the purchase of Bitcoin (BTC).

Through an official statement, MicroStrategy revealed its intentions to sell $ 600 million of senior convertible notes or bonds. Through a private offer for qualified institutional buyers, according to the Securities Law.

In addition, MicroStrategy is considering increasing sales to $ 690 million. With an additional offer of $ 90 million.

The bonds will be offered and sold to qualified institutional buyers. In accordance with Rule 144A of the Securities Act of 1933 ».

Emphasizing: “The offering and sale of the MicroStrategy Class A common shares and bonds that may be issued upon conversion of the bonds, if any, have not been and will not be recorded under the Securities Act. Or, the securities laws of no other jurisdiction. “

Adding: “And the notes and such shares cannot be offered or sold in the United States. No registration or an applicable exemption from such registration requirements. ‘

Very important: “Any offer of the bonds will be made only by means of a private offer memorandum.”

MicroStrategy to sell $ 600 million in bonds

Said bonds will accrue interest payable semiannually due on February 15 and August 15 of each year. Specifically, starting August 15, 2021.

In fact, from MicroStrategy they indicated that such bonds have an expiration date of February 15, 2027. Unless they have been bought back before, exchanged or converted in accordance with their terms.

The publication notes that MicroStrategy intends to use the net proceeds from the sale of the bonds to acquire additional Bitcoins.

In this way, MicroStrategy would increase its reserves in Bitcoin, which are currently estimated at 71,079 BTC.

When did you start buying Bitcoin?

MicroStrategy, started buying Bitcoin in August of last year. Specifically, it announced the purchase of 21,454 BTC at a total purchase price of $ 250 million.

Additionally, in December of last year, MicroStrategy also bought Bitcoin for $ 650 million raised through the sale of convertible bonds. To buy additional BTC.

As of January 22 this year, MicroStrategy CEO Michael Saylor reported that the company had acquired approximately 314 Bitcoins for $ 10 million in cash. In effect, indicating that they had an approximate of 70,784 Bitcoins.

Consequently, in early February, it was known that MicroStrategy bought 295 BTC for 10 million dollars.

In particular, in a report filed with the United States Securities and Exchange Commission (SEC). MicroStrategy detailed that the 295 BTC were acquired at an approximate average price of 33,810 USD for each one.

For his part, Michael Saylor, was very enthusiastic when publishing a tweet, related to the new acquisition of the company.

In closing, to this enthusiasm of MicroStrategy and its CEO Michael Saylor for Bitcoin. Other giants were added like Elon Musk’s Tesla, who bought BTC worth more than $ 1.5 billion.

I retire with this phrase from Félix Rubén García: «Don’t let your enthusiasm turn off, a virtue as valuable as it is necessary. He works, he aspires, he always tends towards the height.

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