Benzinga | Jun 7, 2021 11:35AM EDT

MicroStrategy Seeks $400M Via Institutional Debt to Purchase Bitcoins; Takes $285M Bitcoin Impairment Charge Hit

* MicroStrategy Inc (NASDAQ:MSTR) plans to offer $400 million senior secured notes due 2028 in a private institutional offering.

* The offering proceeds will be utilized to acquire additional bitcoins.

* MicroStrategy purchased 20,857 bitcoins for $1.086 billion in Q1. It bought 253 bitcoins for $15 million in Q2.

* The company will be taking a $284.5 million hit in the current quarter as an impairment charge based on the fluctuations in the market price of bitcoin during the second quarter of 2021.

* Price action: MSTR shares traded lower by 3.17% at $469.33 during the market session on the last check Monday.