MicroStrategy Inc., a company focused on business intelligence services, wants to offer $400 million of convertible bonds to buy more bitcoins (EXANTE: Bitcoin), Bloomberg has learned.
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The company plans to invest the proceeds from the offering in BTC "pending the identification of working capital needs." Fundraising will be carried out as part of a private placement for qualified institutional investors only with repayment period until December 15, 2025.
After December 20, 2023, MicroStrategy may redeem all or part of the notes. The company emphasizes that the decision will be based on market behavior, which will also determine the terms of the final offer.
The bonds will be unsecured and may be redeemed in fiat currency, MicroStrategy shares, or a combination of both, subject to certain requirements ahead of schedule. Twice a year, the company promises to transfer interest payments to creditors.
As iHodl recently reported, MicroStrategy purchased additional bitcoins so that the total amount of cryptocurrencies the company holds is currently over 40,000 BTCs (over $751,8 million).
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