MicroStrategy has announced that it will now offer $400 million of senior notes to due in 2028 and will use the money to buy more Bitcoin.
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This will now mark the second time the company has offered debt in order to fund Bitcoin purchases. The company first offered senior notes in mid-February and raised $600 million to buy Bitcoin that is set to mature in February of 2027.
The announcement also mentioned that the company's Bitcoin would now be held by a new subsidiary called MacroSrategy LLC. This subsidiary now holds 92,079 Bitcoin.
At Bitcoin's current price of about $36,000, an additional $400 million of the cryptocurrency would bring that tally to approximately 103,200 Bitcoin.
MicroStrategy's CEO, Michael Saylor, recently spoke at the 2021 Bitcoin conference and said that when he first discovered Bitcoin he thought it was like digital gold.
"When I discovered bitcoin I thought this is digital gold on a big tech monetary network and it's going to grow by a factor of a hundred. Then I thought, well, I should buy as much as I can...I was buying it and I was thinking I have to buy as much as I can, as fast as I can or someone will figure this out and I won't be able to."
Saylor's discovery led his company to purchase significant amounts of Bitcoin. After the $400 million in new senior notes is used for Bitcoin, the company will have $1 billion in notes set to mature in 2027 and 2028. While the risk seems excessive, the company is up nearly 50% on its existing Bitcoin holdings.