May 21, 2024

MicroStrategy raised $ 500 million to buy bitcoin

MicroStrategy raised $ 500 million to buy bitcoin

MicroStrategy Inc borrowed $ 500 million through bonds to buy cryptocurrency.

MicroStrategy placed high-yieldbonds in the amount of $500 million, with an annual interest rate of 6.125% and maturity in 2028. 

MicroStrategy now owns about 92,000 BTC worth about $3.2 billion. The latest bond placement will bring the company $488 million to replenish its reserves in the first cryptocurrency.

MicroStrategy said it expects to incur a lossin the amount of $284.5 million in the second quarter due to a 42% drop in BTC since the end of March. MicroStrategy shares traded at $459.38 on the Nasdaq Stock Market last week, down more than 60% from the $1,272 peak reached in February. After the placement of the bonds, the share price increased by 14% to $587.

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