MicroStrategy, a company that has made buying bitcoins a regular habit, has recently made headlines with its plan to raise $500 million through a stock sale to purchase additional bitcoins. The company has since increased its stake by 40%, adding even more bitcoins to its treasury.
Bitcoin Plan Expanded to $700 Million
MicroStrategy announced its plan to offer $500 million in convertible notes, allowing investors to purchase bonds that can be converted into company stock in the future. The net proceeds will primarily be used to acquire additional bitcoins.
The company later increased its offer by 40% to $700 million, a significant expansion of its initial plan.
The bonds are intended for institutional investors and are being offered privately. They are unsecured, have senior status, and expire in June 2023.
This is not the first time MicroStrategy has raised capital through a share sale to buy additional bitcoins. The company has previously purchased billions of dollars’ worth of bitcoin financed with loans. JPMorgan, a major American bank, has criticized MicroStrategy’s strategy, calling it a major risk.
Largest Publicly Traded BTC Holder
Despite the criticism, MicroStrategy remains committed to its Bitcoin strategy. The company has been investing in bitcoin for years and has never stopped buying more. In 2020, MicroStrategy became the first publicly traded company to invest in bitcoin, and since then, its holdings have grown significantly.
Today, MicroStrategy owns an impressive 214,400 bitcoins, valued at approximately $14 billion at current prices. No other publicly traded company comes close to MicroStrategy’s massive BTC holdings, and the company’s strategy shows no signs of slowing down anytime soon.