MicroStrategy, the software company has revealed that the conclusion of its $500 million offerings of secured notes on the 14th of June. It also disclosed its intention to use the proceeds, which is around $488 million to purchase more Bitcoin [after taking into consideration, the discounts, commissions, and expenses].
The latest development comes a week after MicroStrategy had announced this latest offering. Originally, the firm had planned to secure $400 million, however, it was later amplified to $500 million. The official press release on the same read,
“The aggregate principal amount of the notes sold in the offering was $500 million and the notes bear interest at an annual rate of 6.125%. The notes were sold in a private offering to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and to persons outside of the United States in compliance with Regulation S under the Securities Act.”
The firm currently holds more than 92K BTC, which is under the purview of its newly formed subsidiary MicroStrategy. In short, it owns more bitcoin than any other organization in the world, and hence the latest news suggests a promising sentiment about the crypto-assets future despite undergoing a series of corrections this quarter.
MicroStrategy may sell almost $1 billion in stock
On the same day, the company also announced the launch of “at the market” securities offering via an S-3 filing for the US Securities and Exchange Commission [SEC]. According to the official document, this offering is likely to enable a sell up to $1 billion of its Class A Common stock over time. The filing also revealed that the proceeds from it would be directed for general corporate purposes, including the acquisition of Bitcoin.
The news follows at the backdrop of Bitcoin’s price appreciating above the psychological level of $40k as the week dawned.