Unperturbed by a downgrade from Citi analyst Tyler Radke, MicroStrategy has announced an increase of it’s convertible notes offering to $500 million with an extra exercisable option for $100 million, up from $400 million.
“MicroStrategy estimates that the net proceeds from the sale of the notes will be approximately $537.2 million (or approximately $634.9 million if the initial purchasers exercise in full their option to purchase additional notes), after deducting the initial purchasers’ discounts and commissions and estimated offering expenses payable by MicroStrategy,” they say.
The company “intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its Treasury Reserve Policy.”
The offering will close on December 11 2020, with it maturing on December 15th 2025, courting an interest rate of 0.750% per annum.
The company will be able to convert these notes just before Christmas, on or after December 20th.
Something that would bring their bitcoin holdings to more than a billion, with the company making a very bold decision that has caught the attention of everyone.
In breaking ranks from their peers they may well pioneer a tapping into crypto assets by corporate treasuries that fail to hedge their cash holdings even amidst mass devaluation.
So opening an indirect way to invest into bitcoin as MicroStrategy’s stock soars from a low of $100 in March to now near $300.