Business intelligence software firm %MicroStrategy (NASDAQ: MSTR) is trying to raise $600 million U.S. so that it can buy more %Bitcoin ($BTC).
The company, led by %Crypto bull Michael Saylor, has announced plans to raise money through a $600 million U.S. private offering in convertible notes that it would use to increase its holding of Bitcoin.
MicroStrategy is already the world’s largest owner of Bitcoin, or any cryptocurrency for that matter.
In late February, MicroStrategy disclosed that it bought 3,000 additional Bitcoins, taking its total holding to 193,000 of the digital tokens.
Saylor has said that MicroStrategy’s average purchase price of Bitcoin is $31,544 U.S. Based on Bitcoin’s current price, MicroStrategy’s holding is worth nearly $13 billion U.S.
MicroStrategy first began buying Bitcoin in 2020 as revenue from its software business began to decline.
While the company is still technically a software firm, its share price is now moving largely in tandem with the price of Bitcoin.
MicroStrategy is the latest in a long line of companies that are seeking to raise capital through convertible bond deals, taking advantage of rising stock prices.
The stock of MicroStrategy is down 4% on news of the capital raise. However, the company’s share price has risen 462% over the last 12 months and currently trades at $1,334.01 U.S.
