Microstrategy Sells Shares to Buy Another $400 Million of Bitcoin

Business intelligence firm Microstrategy is offering $400 million worth of ‘senior convertible notes’ which are debt-securities redeemable for the company’s stock.

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In a statement, the firm said:

“MicroStrategy intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its Treasury Reserve Policy pending the identification of working capital needs and other general corporate purposes.”

Microstrategy has already purchased over 40,000 BTC this year. Their net cash on hand dropped from $700 million to $54 million between Q2 and Q3 2020.

Their stock is up 280% since march, reaching the highest price it has been since Q3 2000.

This private security offering is a quick way for them to raise more cash and double down on their Bitcoin bets, which could continue to help rocket their stock price.

Microstrategy seems to think that holding bitcoin is better than their stock. If other companies adopt similar “Reserve Policies” and start selling their cash and their own shares for Bitcoin and other cryptocurrencies, Bitcoin could easily go to $1 million.

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