Benzinga | Feb 16, 2021 02:08PM EST

MicroStrategy Seeks To Raise $600M Via Debt To Purchase Bitcoins

* MicroStrategy Incorporated (NASDAQ: MSTR) will sell $600 million convertible senior notes due 2027 to acquire additional bitcoins. The buyers have 13 days to purchase additional notes worth $90 million.

* The notes will bear interest payable semi-annually and will mature on February 15, 2027.

* The notes will be convertible into cash, shares of MicroStrategy's, or a combination of cash and shares of MicroStrategy.

* Reuters notes that the company's CEO Michael Saylor is one of the most vocal proponents of bitcoin. The company already owns roughly 72,000 bitcoins, valuing its bitcoin holdings at about $3.6 billion.

* Bitcoin surpassed the $50,000 level with the growing acceptance of the digital currency led by proponents like Tesla Inc's NASDAQ: TSLA) CEO Elon Musk.

* Tesla purchased bitcoin worth $1.5 billion on Monday and acknowledged it as a payment mode for its products, as per CNBC. Musk's frequent tweets advocating cryptocurrencies, including the addition of #bitcoin to his Twitter bio, have left a positive impact on the cryptocurrency prices.

* Mastercard Inc. (NYSE: MA) and Bank of New York Mellon Corp.'s (NYSE: BK) recent efforts towards simplifying the cryptocurrency procedures for its customers, including Morgan Stanley's (NYSE: MS) $150 billion investment unit Counterpoint Global possible foray into bitcoin acted as additional catalysts towards the boom.

* MSTR shares have climbed 655% in the last six months.

* Price action: MSTR shares are down 3.51% at $998 on the last check Tuesday.