MicroStrategy is seeking to raise an additional $400 million by offering senior secured notes to purchase more Bitcoin
According to a press release on June 7, publicly traded business intelligence firm MicroStrategy said it intends to offer $400 million senior secured notes to raise funds to purchase more bitcoin.
— Michael Saylor (@michael_saylor) June 7, 2021
“The notes and the related guarantees will be secured, on a senior secured basis with MicroStrategy’s existing and future senior indebtedness, by security interests on substantially all of MicroStrategy’s and the guarantors’ assets, including any bitcoins or other digital assets acquired on or after the closing of the offering, but excluding MicroStrategy’s existing bitcoins as well as bitcoins and digital assets acquired with the proceeds from existing bitcoins. MicroStrategy’s existing approximately 92,079 bitcoins will be held by a newly formed subsidiary, MacroStrategy LLC.”
As per the release, the notes are due 2028 and will be a private offering to qualified institutional buyers both in the US and outside.
In its recent filing with SEC, MicroStrategy also reported an impairment loss of at least $284.5 million related to its previous Bitcoin buys. In February, the company raised a whopping $1.05 billion and then used the nine-figure sum to buy more Bitcoin within the same month.
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