MicroStrategy, the firm that offers business intelligence, has today announced that it has completed its $500 million offering of senior secured notes due 2028.
According to the report, the aggregate principal amount of the notes sold in the offering bear interest at an annual rate of 6.125%.
The report reads in part as follows:
“The notes and the related guarantees are 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.”
Revealing the software company’s Bitcoin Holdings, the report says:
“MicroStrategy’s existing approximately 92,079 bitcoins are being held by a newly formed subsidiary, MacroStrategy LLC.”
The company added that it plans to use the proceeds estimated at $488 million – after discounts, commissions, and expenses, to buy more Bitcoin (BTC).
How Much Bitcoin (BTC) Could MicroStrategy Buy?
The firm currently holds 92,079 BTC as aforementioned, which is in the custody of the newly formed subsidiary, MicroStrategy.
At the time of writing, Bitcoin (BTC) is trading at relatively $40,800, suggesting that MicroStrategy will be able to purchase around 11,990 more Bitcoin. This development will take MicroStrategy’s Bitcoin holdings beyond 100,000.
Initially, $400 million was planned for the offering but was later raised to $500 million. Going by the report, the notes accrued over $1.6 billion worth of orders, including interest from lots of hedge funds.