MicroStrategy to raise another $600 million to plow into bitcoin as the cryptocurrency crosses $50,000 threshold (MSTR)

<p><img src="https://static3.businessinsider.com/image/602bc6a6b3c2a800183cce46-2400/GettyImages-1212805830.jpg" border="0" alt="Trader" data-mce-source="Spencer Platt/Getty Images" data-mce-caption="Traders work on the floor of the New York Stock Exchange (NYSE) on March 16, 2020 in New York City" data-link="https://www.gettyimages.co.uk/detail/news-photo/traders-work-on-the-floor-of-the-new-york-stock-exchange-on-news-photo/1212805830'adppopup=true"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><ul><li><strong>MicroStrategy is continuing its bitcoin buying binge as the cryptocurrency crosses the $50,000 level.</strong></li><li><strong>MicroStrategy said on Tuesday it is raising $600 million from investors to buy more bitcoin.</strong></li><li><strong>The technology company already owns 70,784 bitcoin, worth more than $3.5 billion on Tuesday.</strong></li><li data-stringify-indent="0"><a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell'utm_source=markets&amp;utm_medium=ingest" target="_blank" rel="noopener noreferrer" data-stringify-link="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell" data-sk="tooltip_parent"><strong data-stringify-type="bold">Sign</strong><strong data-stringify-type="bold">&nbsp;</strong><strong data-stringify-type="bold">up</strong><strong data-stringify-type="bold">&nbsp;here for our daily newsletter, 10 Things Before the Opening Bell</strong></a><strong data-stringify-type="bold">.</strong></li></ul><hr><p><a href="https://markets.businessinsider.com/stocks/mstr-stock">MicroStrategy</a> is continuing it <a href="https://markets.businessinsider.com/currencies/btc-usd">bitcoin</a> buying binge as the price of the cryptocurrency recently <a href="https://markets.businessinsider.com/currencies/news/bitcoin-price-record-high-above-50000-crypto-experts-2021-2-1030087033">crossed the $50,000 level</a>.</p><p>In a <a href="https://www.microstrategy.com/en/investor-relations/press/microstrategy-announces-proposed-private-offering-of-600m-of-convertible-senior-notes#:~:text=TYSONS%20CORNER%2C%20Va.%2C%20February,a%20private%20offering%20to%20qualified">press release on Tuesday</a>, the software technology company said it plans to raise an additional $600 million from convertible senior notes, of which all the proceeds will be used to buy more bitcoin.</p><p>MicroStrategy is the first corporation to directly purchase bitcoin, as its CEO, Michael Saylor, sought to hedge against a potential devaluation in the US dollar. Since the company's first purchase of bitcoin in August, MicroStrategy now owns 70,784 bitcoin, worth more than $3.5 billion on Tuesday.</p><p>More corporations have followed the footsteps of MicroStrategy and directly purchased bitcoin on their balance sheet, <a href="https://www.businessinsider.com/bitcoin-price-square-buys-million-ubiquitious-potential-currency-digital-tech-2020-10'utm_source=markets&amp;utm_medium=ingest">including Square</a>, and more recently, <a href="https://markets.businessinsider.com/stocks/tsla-stock">Tesla</a>.</p><p>The electric vehicle manufacturer <a href="https://markets.businessinsider.com/currencies/news/tesla-buys-bitcoin-elon-musk-stock-accept-form-of-payment-2021-2-1030055107">acquired $1.5 billion in bitcoin</a> in January and said it plans to begin accepting the cryptocurrency as a form of payment for its products.</p><p>This isn't the first time MicroStrategy has raised money for the sole purpose of buying more bitcoin. In December, <a href="https://markets.businessinsider.com/currencies/news/microstrategy-plans-raise-400-million-private-offering-buy-more-bitcoin-2020-12-1029872851">the firm raised $400 million</a> to add to its bitcoin holdings.</p><p>MicroStrategy has paid an average of $16,035 per bitcoin, and the move has paid off. Shares of MicroStrategy have soared 736% since the stock became a de-facto bitcoin ETF with its first purchase in August. The company's market valuation has exploded from less than $2 billion in August to more than $10 billion today.</p><p>The bet has also made CEO Michael Saylor&nbsp;<a href="https://www.bizjournals.com/washington/news/2021/01/22/bitcoin-microstrategy-michael-saylor-billionaire.html">a billionaire based on his 2.4 million share stake</a> in the company.</p><p>Shares of MicroStrategy traded up as much as 5% in Tuesday morning trades.</p><p><strong><em>Read more:&nbsp;</em></strong><a href="https://www.businessinsider.com/stock-market-bubble-bitcoin-investment-strategy-speculative-market-crypto-ruffer-2021-2'utm_source=markets&amp;utm_medium=ingest" target="_blank" rel="noopener"><em>A Ruffer portfolio manager invested a portion of his $4.8 billion fund in Bitcoin. Here's what swayed him to bet on crypto - and the 2 other ways he's hedging against worrying speculative bubbles</em></a></p><p><a href="https://markets.businessinsider.com/currencies/news/microstrategy-stock-price-raise-600-million-buy-bitcoin-crosses-50000-level-2021-2-1030087775#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/pikes-peak-hill-climb-colorado-most-dangerous-racetrack-2020-2">Why Pikes Peak is the most dangerous racetrack in America</a></p>
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