... According to CNBC’s Kate Rooney, the purchases have also come at a $2.4 billion debt.
“MicroStrategy can be a tough company to size up,” Rooney said on Monday. “It’s both a software firm and essentially a Bitcoin holding company and both of these businesses impact the balance sheet and the bottom line.”
Most of the BTC buys have come in the form of convertible notes, she noted, with investors getting company stock on maturity.
$1.7 billion of the debt is in the senior convertible notes, at an interest rate of between 0% and 0.75%. The firm has also taken on $500 million worth of debt in senior secured notes that offer a 6.1% interest rate. The latest debt is a “first-of-its-kind” $205 million bitcoin-backed loan taken in April at an interest rate of roughly 4%.
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“MicroStrategy can be a tough company to size up,” Rooney said on Monday. “It’s both a software firm and essentially a Bitcoin holding company and both of these businesses impact the balance sheet and the bottom line.”
Most of the BTC buys have come in the form of convertible notes, she noted, with investors getting company stock on maturity.
$1.7 billion of the debt is in the senior convertible notes, at an interest rate of between 0% and 0.75%. The firm has also taken on $500 million worth of debt in senior secured notes that offer a 6.1% interest rate. The latest debt is a “first-of-its-kind” $205 million bitcoin-backed loan taken in April at an interest rate of roughly 4%.
read more