MicroStrategy shares fell more than 2% Tuesday after the company announced its intention to buy more bitcoin, as it said it plans to offer about $600 million of its convertible principal loans and use the net proceeds to buy bitcoin. After this announcement, the company’s stock declined by more than 5% in pre-market trading.
The company already owns 72,000 bitcoins since February 2, equivalent to $3.6 billion in the cryptocurrency price on Tuesday, and this is the second time MicroStrategy has raised funds to fund a bitcoin buying campaign.
It is reported that last December MicroStrategy ended the registration of $650 million in convertible principal loans. Convertible loans or bonds are defined as debt that can be converted into money or stock from the company or even a combination of the two at a later time.
MicroStrategy, led by Chairman and CEO Michael Saylor, became one of the first companies to adopt the idea of companies buying bitcoin as a form of investment, and it closed its first purchase of the digital currency last August by acquiring 21,454 bitcoin using the funds available in its investment budget.
Since August, the company’s shares have received great and surprising attention, considering some investors that the company’s stock is their window to invest in bitcoin, and its shares have risen by more than 660% since last August 11, the date on which the company announced its purchase of bitcoin, and its share reached its highest level during a 52-week period, recording $1,315 on February 9.