MicroStrategy's hunger for Bitcoin seems to have no end, the company wants to raise $ 400 million in a private offering of convertible notes to invest in Bitcoin.
"MicroStrategy intends to invest the net proceeds from the sale of bitcoin notes in accordance with its Treasury Reserve Policy pending the identification of working capital needs and other general corporate objectives," according to the statement.
A convertible note is a debt security that can be converted into cash, MicroStrategy common shares, or a combination of cash and shares, at MicroStrategy's choice. When selling these bonds, the company will raise the money, but will have to repay the bondholders with interest in the future.
According to the statement, MicroStrategy wants to raise “$ 400 million in the principal aggregate value of convertible notes due 2025 in a private offering to institutional buyers, in compliance with the Securities Law”
The $ 400 million would allow the company to buy more Bitcoin, which would add to the $ 780 million it has already invested in cryptocurrency during the year 2020.
Some analysts are viewing the stock as MicroStrategy planning a "speculative attack against the US dollar".
Just last week the company bought $ 50 million in Bitcoin, which added another 2,574 coins to its portfolio.
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