MicroStrategy to Raise $500M to Acquire Additional Bitcoin

Public-listed business intelligence firm MicroStrategy has announced its intention to offer $500 million aggregate principal amount of convertible senior notes to purchase more bitcoin (BTC).

MicroStrategy Proposes $500M Debt Sales 

The notes, due in 2032, will be offered in a private offering only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933.

As per a press release, the debt security will be unsecured obligations of MicroStrategy and will come with interest –  payable semi-annually in arrears, specifically June 15 and December 15 of each year. The first payment will arrive on December 15, 2024. Moreover, the company will grant initial purchasers an option to buy an additional $75 million of notes.

“The offering is subject to market and other conditions, and there can be no assurance as to whether, when or on what terms the offering may be completed,” MicroStrategy said in a press release.

While the company’s priority is to acquire more BTC, net proceeds from the sale will also be used for general corporate purposes.

Bullish on Bitcoin

The latest developments further underscore MicroStrategy’s commitment and optimism toward the world’s largest cryptocurrency. Since introducing the Bitcoin strategy in 2020, MicroStrategy has continued to aggressively buy BTC.

As of the time of writing, the company has purchased 214,400 BTC, equivalent to $14.3 billion. The most recent purchase occurred in April, when it bought 122 BTC for approximately $7.8 million. 

Data from Saylor Tracker shows that MicroStrategy’s bitcoin portfolio is currently up 89%. The company spent $7.5 billion to acquire 214,400 BTC, now worth $14.3 billion. 

BTC trades at $66,837 at press time, representing a mild 3% decline in the past 24 hours.