{"id":128405,"date":"2020-12-08T04:23:10","date_gmt":"2020-12-08T01:23:10","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/microstrategy-will-issue-400-million-in-securities-to-buy-more-bitcoin\/"},"modified":"2020-12-08T04:23:10","modified_gmt":"2020-12-08T01:23:10","slug":"microstrategy-will-issue-400-million-in-securities-to-buy-more-bitcoin","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/microstrategy-will-issue-400-million-in-securities-to-buy-more-bitcoin\/","title":{"rendered":"# MicroStrategy will issue $400 million in securities to buy more Bitcoin"},"content":{"rendered":"<p>&#8220;<strong># MicroStrategy will issue $400 million in securities to buy more Bitcoin  <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjAtMTIvMWE3NjJkMmItMTQ3My00NDIwLWEyMzEtYmE1ZjhkYjExNDUzLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>The world\u2019s largest publicly traded business intelligence firm, MicroStrategy has announced plans to invest the proceeds from a $400 million securities offering into Bitcoin.<\/p>\n<p>On Dec. 7, the firm <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.businesswire.com\/news\/home\/20201207005918\/en\/\">revealed<\/a> plans to issue $400 million in convertible senior notes \u2014 a debt security that can be converted into the issuing company\u2019s shares. The announcement stated:<\/p>\n<blockquote><p>\u201cMicrostrategy intends to invest the net proceeds from the sale of the notes in Bitcoin.\u201d<\/p><\/blockquote>\n<p>At current prices, the $400 million would increase the company\u2019s holdings by 20,833, which would bring the firm&#8217;s total crypto stash to almost 62,000 BTC.<\/p>\n<p>Microstrategy will pay semi-annual interest to the note-holders until December 2025. The firm also reserves the right to redeem the notes for cash from Dec. 20, 2023.<\/p>\n<p>The announcement states that MicroStrategy may also offer up to an additional $60 million worth of notes to its initial purchasers within 13 days of commencing the offering.<\/p>\n<p>The securities will be issued under Rule 144 of the Securities Act, and will be available to qualified institutional investors only.<\/p>\n<p>In response to MicroStrategy\u2019s announcement, Gabor Gurbacs, the CEO of New York-based investment firm VanEck, suggested the offering is more indicative of a digital asset fund than a publicly listed company:<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">At what point does a securities offering that raises dollars with the purpose of investing in Bitcoin make a publicly listed company to be a listed fund\/investment company?<\/p>\n<p>\u2014 Gabor Gurbacs (@gaborgurbacs) <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/gaborgurbacs\/status\/1336087274447056899?ref_src=twsrc%5Etfw\">December 7, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>MicroStrategy made waves in the crypto world during August, when the firm revealed it had adopted Bitcoin as its primary reserve asset after purchasing 21,454 BTC for $250 million. It then purchased a further 16,796 BTC for $175 million the following month. The purchases were made through Coinbase\u2019s OTC and brokerage platform.<\/p>\n<p>Just a few days ago on Dec. 5, MicroStrategy\u2019s CEO, Michael Saylor, <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/michael_saylor\/status\/1334990791496884224\">announced<\/a> the firm had purchased a further 2,574 BTC priced at <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roximately $19,427 each for $50 million, bringing its total crypto holdings up to roughly 40,824 BTC.<\/p>\n<p>At current market value, MicroStrategy\u2019s BTC stash is worth nearly $784 million, meaning the firm is currently up 65% on its $475 million investment.<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/microstrategy-will-issue-400-million-in-securities-to-buy-more-bitcoin\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# MicroStrategy will issue $400 million in securities to buy more Bitcoin &#8221; The world\u2019s largest publicly traded business intelligence firm, MicroStrategy has announced plans to invest the proceeds from a $400 million securities offering into Bitcoin. On Dec. 7, the firm revealed plans to issue $400 million in convertible senior notes \u2014 a debt&#8230;<\/p>\n","protected":false},"author":1,"featured_media":128406,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/1a762d2b-1473-4420-a231-ba5f8db11453.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74863,117],"class_list":["post-128405","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-cryptocurrencies","tag-business"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/128405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=128405"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/128405\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/128406"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=128405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=128405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=128405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}