- Nasdaq-listed Microstrategy announced that it will raise $400M to buy more BTC.
- The firm aims to guarantee the notes unconditionally.
- Its new subsidiary MacroStrategy will hold its currently owned 92,079 BTC.
Microstrategy, a Nasdaq-listed intelligence company, announced on Monday its plans to raise $400 million in senior-secured notes, a type of debt offering. It will use the proceeds to buy more Bitcoin.
Further, they added, “The notes and the related guarantees will be secured, on a senior secured basis with MicroStrategy’s existing and future senior indebtedness, 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, but excluding MicroStrategy’s existing bitcoins as well as bitcoins and digital assets acquired with the proceeds from existing bitcoins.”
To clarify, this is in reference to how secure the debt-offering will be. It will go to the extent that the notes and related guarantees will be secured by security interests. These will be on almost all of MicroStrategy’s and the guarantors’ assets. This excludes MicroStrategy’s currently-owned Bitcoin, but including all digital assets acquired at the time of the offering.
Along with this, the company also announced that it will hold its existing 92,079 bitcoins in a newly formed subsidiary named MacroStrategy LLC.