Enterprise software company MicroStrategy Inc has sold $500 million of notes to buy more Bitcoin in what is the first-ever junk bond sale used to finance the purchase of the cryptocurrency.
The US based company has emerged as one of the most staunch backers of cryptocurrencies.
The senior secured notes will be available to qualified institutional buyers with proceeds earmarked to be used to secure more coins.
According to Bloomberg, MicroStrategy had initially planned to issue $400 million of the debt, and had already seen that much in demand by the time the deal was launched.
The company initially planned to issue $400 million in debut deal but there was significant demand. It sold the secured notes at a yield of 6.125%, lower than early pricing discussions of 6.25% to 6.5%.
MicroStrategy Inc bond sale to fund the purchase of the cryptocurrency came amid a tumble in the value of Bitcoin.