MicroStrategy has officially closed on its secured notes offering, which was due in 2028. The notes, which bore an annual interest of 6.125 percent, were sold in a private offering to qualified individuals and institutions were worth approximately $500 million.
The company has declared its intent to purchase Bitcoin with the proceeds. On average, the proceeds are approximated to be worth $488 million after expenses, discounts, and commissions.
MicroStrategy has been an avid supporter and investor of cryptocurrencies. In February this year, they added 19,000 BTCs to their portfolio, which cost them a hefty $1.026 billion at an average price of $52,765 per Bitcoin. Weeks later, in March, they added 262 Bitcoin, valued at $15 million at the time, to their investment portfolio. In April, they purchased 253 more Bitcoin.
The company is one of the largest backers of crypto, with an estimated value of over $5 billion in crypto investments. Other major companies have since come aboard the virtual currency wagon. Visa recently launched support for cryptocurrencies. Paypal also recently announced that their customers could use crypto to pay for goods and services through their platform.
The use of cryptocurrencies is also being adopted by governments and for payment of utility bills. The sports industry has also embraced it through the use of NFTs and other collectibles.
