MicroStrategy Sells $500 Million Bonds To Buy Bitcoin

MicroStrategy has successfully sold $500 million worth of notes ("notes"), which it announced at a press conference on June 8 that it was selling to buy Bitcoin. The bonds were sold to qualified institutional buyers through a special offer under Rule 144A under the Securities Act of 1933. All were sold to persons outside the United States under Regulation S under the Securities Act. At the time of the offering, MicroStrategy estimated net revenue from the sale of promissory notes and related warrants, excluding initial discounts and commissions, and the estimated cost of introducing MicroStrategy to be $488 million. MicroStrategy Approves Bond Sale In a press release released earlier today, MicroStrategy states that all bonds and warrants are sold to qualified institutional buyers under the Securities Act. “The Bonds are fully and unconditionally warranted by MicroStrategy Services Corporation, a wholly owned subsidiary of MicroStrategy, on the basis of top-level security, jointly and severally, and may likewise be warranted by certain of MicroStrategy's subsidiaries, which may be formed or purchased after its closure. The offer.” There was a lot of interest in buying the banknotes offered by the company as the company reportedly received more than $1.5 billion in orders for $500 million notes. CEO Michael Saylor, who has always been optimistic about Bitcoin, said the plan is to add it to his portfolio, which currently has around 92,079 Bitcoin An offer to sell or offer to sell bonds or other securities does not constitute a request and the sale of bonds or related guarantees in any state or jurisdiction where any such offer, request or sale would be illegal under this law.

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