MicroStrategy raises $500 million to buy more Bitcoin
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MicroStrategy raises $500 million to buy more Bitcoin

Saudu Clement
Saudu Clement

MicroStrategy has raised $500 million in bonds and plans to use the funds to buy more Bitcoin.

As reported by BTC PEERS, the business intelligence firm announced a $400 million debt-for-Bitcoin offering last week. However, this was increased to $500 million. In an official statement on Monday, the company disclosed that it had completed the sales of the secured notes due 2028.

MicroStrategy’s net proceeds from the sales are approximately $488 million, all of which will be used to acquire more Bitcoin.

According to an earlier Bloomberg report, institutional investors showed massive interest in the offer. MicroStrategy reportedly received more than $1.5 billion in orders for the offering, while the price of the flagship currency was still trading around $33,400. This suggests that investors are still bullish on the future of Bitcoin despite the market correction last month.

MicroStrategy is yet to disclose when it will make the Bitcoin purchase. As of Monday morning, the firm still held 92,079 Bitcoin tokens valued at around $3.8 billion. Furthermore, the company’s shares surged by nearly 15% following the announcement. On a year-to-date basis, MicroStrategy’s shares have climbed by nearly 40%.

Meanwhile, following MicroStrategy’s Monday announcement and calls by the Tanzanian president asking the central bank to prepare for cryptos, Bitcoin prices spiked by more than 13% on Monday. As of press time, the digital asset had reclaimed the $40k benchmark.