MicroStrategy has raised the target amount of its convertible senior notes offering to $500m, with bids at around $1.6bn, Bloomberg reported, citing its own sources.
MicroStrategy originally announced a $400 million debt issue maturing in 2028. The business analytics software provider will use the proceeds to purchase bitcoin.
According to the agency, the firm sold the entire tranche of the bonds on Tuesday, June 8. The company said in a statement that it expects to close the offering by 14 June.
MicroStrategy has also set the yield on the bonds at 6.125% per annum, although according to Bloomberg, rates of 6.25% to 6.5% were previously discussed with investors.
The debt securities will be secured by the company's assets, including bitcoins acquired during and after the offering. Coins already owned by MicroStrategy (92,079 BTC, according to Bitcoin Treasuries) are not included in the guarantees.
In December 2020, the firm floated $650m of unsecured convertible senior notes to raise funds to buy digital gold. The amount exceeded the target by $100m and the target was initially surpassed by $250m.
MicroStrategy sold $1.05bn worth of similar securities to investors in February 2021.
Recall that the firm's CFO, Fong Le, described investing in bitcoin as a direct responsibility of technology companies.
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