MicroStrategy has announced its plans to offer $500 million in convertible senior notes to qualified institutional buyers to increase its Bitcoin holdings.
MicroStrategy has recently announced its plans to offer $500 million in convertible senior notes to qualified institutional buyers. The offering is intended to increase the company's Bitcoin holdings, reaffirming its commitment to Bitcoin as a primary reserve asset.
The Virginia-based firm, led by CEO Michael Saylor, has been making headlines since 2020 for its aggressive Bitcoin acquisition strategy. Currently, MicroStrategy holds over 214,400 BTC, valued at approximately $15 billion, making it the largest public company holder of Bitcoin with an average purchase price of roughly $35,000 per coin. With the current trading price of Bitcoin near $68,000, the company's investment remains profitable.
The proposed private offering involves convertible senior notes due in 2032, with an option for initial purchasers to buy up to an additional $75 million of notes. These notes are to pay interest semiannually and are set to mature on June 15, 2032, unless they are converted, redeemed, or repurchased before that date.
MicroStrategy's press release outlines the terms of the notes, including the company's right to redeem for cash all or any part of the notes after a certain date, and the holder's right to require MicroStrategy to repurchase their notes on June 15, 2029. The notes will be convertible into cash, shares of MicroStrategy’s class A common stock, or a combination of both, at the company's discretion.
The company has expressed its intention to use the net proceeds from this offering primarily for acquiring additional Bitcoin, in line with its strategy of using Bitcoin as its main reserve asset. Any remaining funds may be used for general corporate purposes.
