MicroStrategy (Nasdaq:MSTR) , an analytics software firm that has emerged as a publicly traded Bitcoin proxy, has announced the completion of a sale of $500 million in secured notes with an annual coupon of 6.125%. The notes were sold in a private placement and come due in 2028.
Net proceeds from the sale of the notes and the related guarantees are expected to be approximately $488 million, after deducting initial purchaser discounts and commissions and estimated offering expenses payable by MicroStrategy.
The notes and the related guarantees are secured by security interests on substantially all of MicroStrategy’s and the guarantors’ assets, including any Bitcoins or other digital assets acquired on or after the closing of the offering, according to the company. This is to the exclusion of existing Bitcoins as well as Bitcoins and digital assets acquired with the proceeds from existing Bitcoins.
MicroStrategy reports that currently approximately 92,079 Bitcoins are being held by a newly formed subsidiary, MacroStrategy LLC.
Shares in MicroStrategy popped on the news rising by 12% as of this writing. MicroStrategy’s market cap stands at around $5.65 billion.
At the current price of BTC, MicroStrategy holds approximately $3.74 billion in Bitcoin.