MicroStrategy Plans $500 Million Convertible Debt Offering To Snatch Up Even More Bitcoin 

Software firm and newly branded “Bitcoin development company” MicroStrategy is ready to add to its BTC stash, and it plans to utilize a $500 million private offering of convertible senior notes to do it.

MicroStrategy Looking To Expanding BTC Cache

MicroStrategy’s recent proposal reveals that the Nasdaq-listed business intelligence firm is still interested in buying more Bitcoin. In a Thursday announcement, the company said it intends to offer $500 million in aggregate principal amount of convertible senior notes with a maturity date of June 15, 2032.

“The notes will be unsecured, senior obligations of MicroStrategy, and will bear interest payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2024. The notes will mature on June 15, 2032, unless earlier repurchased, redeemed or converted in accordance with their terms,” the company’s press release reads.

The private offering will be available to individuals believed to qualify as institutional buyers by Rule 144A of the Securities Act of 1933. The notes will be redeemable for cash, shares of MicroStrategy’s class A common stock, or a combination thereof, subject to certain conditions. The terms of conversion will be specified after the pricing of the offering.

The announcement notes that the net proceeds of the convertible notes will primarily be used to acquire more Bitcoin and other corporate affairs.

MicroStrategy’s Bitcoin Gambit Paying Off

MicroStrategy is the single largest corporate holder of Bitcoin, with 214,400 of the alpha cryptocurrency in its treasury — more than $14 billion at today’s prices. It’s also more than 1% of the total supply of Bitcoin that will ever be created.

It first acquired BTC back in 2020. The company’s former CEO and now-chairman Michael Saylor argues the crypto strategy is the most suitable way to preserve wealth and fetch nice returns for shareholders.

CoinGecko data shows that Bitcoin is today priced at $66,887 per coin, down roughly 5.4% in seven days. It hit a new all-time high above $73,700 in March. Despite Bitcoin falling from the March ATHs, MicroStrategy is still in the green on its gradually increasing investment.