MicroStrategy shares were up more than 5% in premarket trading on Tuesday, after the software company announced its intentions to buy more bitcoin.
In a press release, MicroStrategy said it intends to provide $ 600 million in senior convertible notes and use net income to buy bitcoin.
The company already owns nearly 72,000 bitcoin units as of February 2. That’s worth nearly $ 3.6 billion, based on Tuesday’s virtual currency price.
This is the second time that MicroStrategy has raised funding to fund a cryptocurrency acquisition. In December, the Virginia company closed a $ 650 million senior convertible banknote offer.
Convertible notes are debt, but can be converted into shares of one company, cash or a combination of both at a later date.
Under the leadership of President and CEO Michael Saylor, MicroStrategy became an early adopter of companies that buy bitcoin as an investment. The company unveiled its first cryptocurrency acquisition in August, acquiring 21,454 bitcoins using its existing cash on its balance sheet.
Saylor is advocating for other companies to do the same, hosting a virtual conference earlier this month called “Bitcoin for Corporations.” Saylor publicly encouraged Tesla CEO Elon Musk to follow his “playbook” in a Twitter conversation in December. A little over a month later, Tesla announced that it had bought bitcoin worth $ 1.5 billion and intends to finally accept digital currency as payment for its products.
The price of bitcoin reached $ 50,000 per coin for the first time on Tuesday morning, continuing its rally in recent days, while a number of well-known financial companies, such as BNY Mellon and Mastercard, announced movements in the crypto space.
MicroStrategy shares have been in tears since August, as some investors viewed the shares as a way to gain exposure to bitcoin. Shares have risen more than 660% since August 11, when the company unveiled its first bitcoin purchase.
The stock reached a high of 5215 weeks, of $ 1,315, on February 9.