MicroStrategy Corporation (MSTR), a leading business intelligence firm, announced Friday that it has raised $ 650 million in convertible bonds to fund further Bitcoin (BTC) purchases, confirming CEO Michael Saylor’s belief in a revolutionary digital asset.

On Friday, the company confirmed that it sold $ 650 million of old convertible bonds with an interest rate of 0.750% maturing in 2025. The interest will be paid semi-annually on June 15 and December 15, starting in 2021.

According to the press release:

MicroStrategy intends to invest the net income from the sale of Bitcoin accounts in accordance with the Treasury Reserve Policy pending the determination of working capital requirements and other general corporate objectives.
The securities were issued in accordance with ยง 144a of the Securities Act of 1933 and will only be available to institutional investors.

The trip was completed just days after the company announced plans to use bond yields to get more bitcoins. As Cointelegraph previously reported, MicroStrategy originally planned an increase of $ 400 million. For $ 650 million, the company can buy over 36,300 bitcoins at current prices.

Earlier this year, MicroStrategy shocked the world by announcing that it converted most of its balance sheet to Bitcoin. At the time, CEO Michael Sailor said his company had a “$ 500 million ice cube”.

The company currently uses 40824 BTC, which is over $ 734 million. This represented a profit of approximately $ 260 million to the original purchase price.

Wall Street analysts are concerned that MicroStrategy has been overly influenced by Bitcoin, which has kept many institutional investors on the sidelines for a decade until recently. Citbank recently downgraded the MSTR rating to Sell from Neutral due to its “disproportionate” focus on BTC.

MicroStrategy may be one of the largest Bitcoin holding companies, but not the only one. MassMutual Insurance, Massachusetts announced Thursday that it had purchased $ 100 million in BTC for its public investment account, making it one of the largest owners. Listed companies such as Galaxy Digital (GLXY), Square (SQ) and Hut 8 Mining Corp (Hut-8) have invested between $ 36 million and $ 134 million in bitcoin. Every company now makes big profits.

Source: CoinTelegraph