Key points
- MicroStrategy wants to use the new $700 million note issue to manage debt and expand Bitcoin reserves.
- A recent purchase increases MicroStrategy’s bitcoin holdings to 244,800 BTC, reinforcing its position as a major corporate shareholder.
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MicroStrategy, a pioneer in corporate adoption of Bitcoin, announced Today it announced its plan to offer $700 million in convertible senior notes to qualified institutional buyers. The company intends to use the proceeds to redeem senior secured notes and purchase additional bitcoins.
The notes will bear interest payable semi-annually, mature in 2028 and will be convertible into cash or MicroStrategy common stock, MicroStrategy said in a Monday news release.
As part of the move, MicroStrategy will redeem its outstanding $500 million in 6.125% senior secured notes due 2028. Repayment will occur on Sept. 26, 2024, at a higher price. The company will use the remaining funds to purchase more bitcoin.
This won’t be the first time MicroStrategy has issued notes to fund its Bitcoin acquisition. In early June, the company increased its convertible note offering by 40% to $700 million to Bitcoin Acquisitionsmaturing in June 2032.
The latest announcement comes shortly after MicroStrategy revealed The company purchased $1.1 billion worth of bitcoins, bringing its holdings to 244,800 BTC. With continued accumulation, the company’s bitcoin investment will soon reach $10 billion.
MicroStrategy is the largest corporate holder of Bitcoin, followed by Marathon Digital with $1.5 billion in value of Bitcoin stored. According to Bitcoin Treasury BondsMicroStrategy’s Bitcoin holdings now represent 1.16% of the total Bitcoin supply.
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