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Microstrategy Inc. has raised $650 million from the sale of convertible senior notes so that it could buy more bitcoin.<\/strong><\/p>\n In a note to investors<\/a> on Dec. 11, the business intelligence and mobile software firm said it completed the sale of $650 million in convertible bonds to private investors at 0.75% interest per year. The sale was closed just days after Microstrategy made the initial offer<\/a>, which intended to raise $400 million.<\/p>\n Microstrategy plans to use the net proceeds \u2013 about $635 million after expenses \u2013 to buy bitcoin (BTC<\/a>). Should the company go ahead with the planned purchase, it would have invested around $1 billion in the cryptocurrency since August.<\/p>\n At current prices, $635 million would add around 34,500 BTC<\/a> to Microstrategy\u2019s reserve holdings. The firm already holds 40,824 bitcoins valued at $751 million. Microstrategy has earned about $276 million in profits since making its first bitcoin purchase.<\/p>\n <\/ins> <\/ins> <\/p>\n However, some Wall Street analysts have not been impressed by Microstrategy\u2019s \u201caggressive\u201d bitcoin investments. Citigroup analyst Tyler Radke recently downgraded <\/a>Microstrategy from \u201cneutral\u201d to \u201csell\u201d concerned that, with an additional BTC<\/a> purchase from the convertible bonds, the firm had become overexposed.<\/p>\n Michael Saylor, the Microstrategy CEO, has also taken flak from some quarters, accused of turning his outfit into an investment company (IC) or of launching a bitcoin exchange-traded fund (ETF). Saylor rubbished the claims<\/a>, in a post on Twitter this week, stressing that \u201cholding BTC<\/a> doesn\u2019t cause Microstrategy to become an IC\u201d.<\/p>\n He explained that according to the 1940 Investment Co. Act, an investment company is one that invests at least 40% of its assets in securities. But \u201cbitcoin is not a security,\u201d he said, citing the U.S. Securities Exchange Commission (SEC) definitions of the digital asset. Saylor has always maintained that he moved into bitcoin to preserve value.<\/p>\n What do you think about Microstrategy\u2019s dive into bitcoin? Let us know in the comments section below. <\/strong><\/em><\/p>\n The post Microstrategy Completes $650 Million Capital Raise to Fund More Bitcoin Purchases<\/a> appeared first on Bitcoin News<\/a>.<\/p>\n