MicroStrategy Raises Fundraising Target For Investment …

MicroStrategy Raises Bitcoin Funding Goal To $ 550 Million

MicroStrategy today disclosed details of the convertible bond offering from the sale which money it intends to invest in bitcoin. Initially it was said that such way the firm will try to raise $ 400 million, but in the last variant the amount was increased to $ 550 million.

According to the press release, the bonds are being offered to accredited investors in format closed placement. Financing is scheduled to be completed on December 11. MicroStrategy estimates net receipts from sales of $ 537.2 million, including expenses and deductions.

“We intend invest attracted from the sale of bonds funds in bitcoin in accordance with the policy of allocating reserve assets after definitions needs in working capital and other corporate expenses “, – writes it.

Bonds are issued unsecured at an annual interest rate of 0.75%, which will be payable twice a year on June 15 and December 15. The first payment will be made on June 15, 2021, and MicroStrategy plans to fully pay off creditors on December 15, 2025 of the year or earlier.

The convertible bond represents myself debt security allowing his the holder to repay it in traditional currency, shares or their combination. In the case of MicroStrategy, each bond is valued at $ 1 000 and can be converted into 2.5126 Class A MSTR shares. it assumes a share price of $ 397.99, which exceeds their current price by 37%.

MicroStrategy Raises Fundraising Target For Investment ...

If the campaign is successfully completed and the current price is saved cryptocurrencies volume assets MicroStrategy in Bitcoin will exceed $ 1 billion. Previously Citibank analysts downgraded MSTR shares before $ 250 due to the firm’s investment in bitcoin.