MicroStrategy shares were up more than 5% in pre-market trading after the enterprise software company announced intentions to buy more bitcoins.
In a press release, MicroStrategy said it plans to offer $ 600 million in senior convertible notes and use the net proceeds to buy bitcoin.
The company already owns about 72,000 units of bitcoins, as of the filing of a regulation on February 2nd. That’s worth nearly $ 3.6 billion depending on the price of the virtual currency on Tuesday.
This is the second time that MicroStrategy has raised funds to finance the purchase of the cryptocurrency. In December, the Virginia-based company closed a $ 650 million senior convertible ticket offering.
Convertible notes are debts, but can be converted into shares of one company, cash, or a combination of both at a later date.
Under the direction of President and CEO Michael Saylor, MicroStrategy became one of the first companies to buy bitcoin as an investment. The company revealed its first purchase of the cryptocurrency in August, acquiring 21,454 bitcoins with existing cash on its balance sheet.
Saylor advocates for other companies to do the same, organizing a virtual conference earlier this month called “Bitcoin for Business.” Saylor publicly encouraged Tesla CEO Elon Musk to follow his “game book” in a Twitter conversation in December. Just over a month later, Tesla announced that it had bought bitcoin worth $ 1.5 billion and planned to accept digital currency as payment for its products.
The price of bitcoin reached $ 50,000 per coin for the first time on Tuesday morning, and continued its rise in recent days as several established financial companies such as BNY Mellon and Mastercard announced movements in the cryptocurrency space.
MicroStrategy shares have been torn since August, as some investors have viewed the shares as a way to expose themselves to bitcoin. Shares have risen more than 660% since Aug. 11, when the company unveiled its first bitcoin purchase.
On Feb. 9, stocks hit a $ 1.315 high in 52 weeks.