Business intelligence firm, MicroStrategy, has announced that its senior convertible notes offering has hit $650 million. The company had earlier announced its intentions to use the money realized from the offering for Bitcoin investments.
What is MicroStrategy?
MicroStrategy is a business intelligence and mobility software that has a wide range of data analytics capabilities. The firm focuses on helping enterprises and startups to build and deploy analytics and mobility applications that will transform their business. MicroStrategy boasts powerful features in the areas of data discovery, advanced analytics, data visualizations, embedded business intelligence, reporting, and more.
The $650 Million Raise for Bitcoin Investment
MicroStrategy announced on Monday, December 7th that it was targeting a raise of $400 million in a convertible senior note offering. It took the firm only a matter of days after its announcements to meet its target of leveraging bond proceeds to acquire more Bitcoin.
On Wednesday, December 9, the company announced that it had hit a mark of $550 million. However, it later announced that the amount of the offering was boosted to $650 million after the purchaser of the notes exercised in full an option to buy up to an added $100 million.
As the firm noted in a release:
The aggregate principal amount of the notes sold in the offering was $650 million, which includes notes issuable pursuant to an option to purchase.
MicroStrategy and the Bitcoin Vision
MicroStrategy is no stranger to Bitcoin investments and believes it to be the currency for tomorrow. In September, this year, the software firm announced that it had converted most of its balance sheet into BTC. In the words of Michael Saylor, CEO of MicroStrategy, the company was sitting “$500 million melting ice cube” of cash.
On the 4th of December, the firm announced that it had secured the purchase of Bitcoin worth $50 million; an addition to its known holdings in excess of 40,000 BTC. Following the move, the company announced its intentions to invest the net profit from the sales of notes in BTC. However, it will do so per the Treasury Reserve Policy as it awaits the identification of working capital needs and other general corporate purposes.
Since the start of November, MicroStrategy’s stock has more than doubled and is now up around 121% year-to-date. Raising an extra $650 million means the firm can now purchase over 36,300 BTC at current prices.
The Future of Bitcoin
MicroStrategy’s investment in Bitcoin comes amid growing interest from institutional investors in Bitcoin. Companies like Galaxy Digital (GLXY), Square (SQ), and Hut 8 Mining Corp (Hut-8) have investments that could reach $134 million in Bitcoin. Investments like these are important building blocks in Bitcoin’s goal of becoming a global payment system, as well as a store of value.