MicroStrategy said Monday it aims to sell up to $400 million in debt securities to buy Bitcoin.
The market intelligence firm said in a press release that after first making room for business costs, it would “invest the net proceeds from the sale in bitcoin in accordance with its Treasury Reserve.”
MicroStrategy Announces Proposed Private Offering of $400 Million of Convertible Senior Noteshttps://t.co/KvZNIbO6Fa
— Michael Saylor (@michael_saylor) December 7, 2020
Microstrategy’s Foray into Bitcoin
Only “qualified institutional investors” would be able to acquire interest-bearing notes maturing in five years. From December 2023, MicroStrategy can turn the notes into cash, Class A shares, or a combination of the two.
Chief Executive Officer Michael Saylor last week increased the Microstrategy Bitcoin portfolio to 40,824 bitcoins.
This is in addition to the latest purchasing by Microstrategy of 2,574 bitcoins for $50 million in currency, taking the treasury reserves of the market intelligence firm to roughly 40,824 bitcoins.
On Aug. 11, MicroStrategy acquired $250 million in bitcoin for the first time. One month later, it added a further $175 million worth of BTC.
CEO Michael Saylor said the recent investment is part of the treasury reserve program of eschewing inflation-prone cash for bitcoin from MicroStrategy. The 55-year-old executive heralds bitcoin as the world’s “most rational” value-storage submarine.
#Bitcoin is a swarm of cyber hornets serving the goddess of wisdom, feeding on the fire of truth, exponentially growing ever smarter, faster, and stronger behind a wall of encrypted energy.
— Michael Saylor (@michael_saylor) September 18, 2020
Since Saylor first suggested the company’s participation in BTC in late July 2020, MSTR shares have risen 170 percent. Some now deem the enterprise a de-facto exchange-traded bitcoin fund, although an unstable one.
Leading U.S.-based cryptocurrency exchange Coinbase brokered initial bitcoin transactions from MicroStrategy.
What is Microstrategy?
The largest independent publicly listed market intelligence firm, with the leading enterprise analytics framework, is MicroStrategy.
MicroStrategy delivers advanced analytics on a transparent, robust business framework used in the Fortune Global 500 by many of the most respected brands in the world.
Created in 1989 by Michael J. Saylor and Sanju Bansal, in order to make business decisions and create smartphone applications, Microstrategy creates tools to evaluate internal and external data. It is a public company located in the Washington metropolitan region of Tysons Corner, Virginia.
Its major rivals in business analytics are SAP AG Business Items, IBM Cognos, and the BI Network of Oracle Corporation. Saylor is the CEO and chairman of the board.
The company’s latest release of its business intelligence software, MicroStrategy 2020, includes updates to the HyperIntelligence capabilities of the vendor, an embedded analytics system leveraging augmented intelligence and deep learning technology.
The previous platform update, MicroStrategy 2019, centered on three areas: federated analytics, allowing expanded access to data sources and applications; transformational versatility, for simpler creation of mobile applications; and HyperIntelligence, incorporating identification and speech of Bluetooth identity.
The earlier software package, MicroStrategy 10, consisted of MicroStrategy Analytics, MicroStraStra MicroStrategy Workstation was introduced to MicroStrategy 10.10, which was launched in December 2017.
Microstrategy utilizes market intelligence and predictive analytics from a range of outlets, including data warehouses, Excel databases, and Apache Hadoop distributions, to scan and execute analytics on big data.