Key Takeaways
- MicroStrategy plans to issue $700 million in convertible notes.
- Proceeds will redeem $500 million in debt and likely fund additional bitcoin purchases.
- MicroStrategy recently acquired $1.1 billion in bitcoin, reaching 244,800 BTC in total.
MicroStrategy has announced plans to issue $700 million in convertible senior notes due in 2028, with $500 million allocated to redeem existing secured notes that have a 6.125% annual yield. The remaining funds may be used for additional bitcoin purchases or general corporate purposes.
The company also plans to grant buyers an option to purchase up to an additional $105 million in notes. This issuance follows a recent $1.1 billion bitcoin purchase, bringing MicroStrategy’s total bitcoin holdings to 244,800 BTC, valued at approximately $14.2 billion.
Led by Executive Chairman Michael Saylor, MicroStrategy began purchasing bitcoin in 2020, establishing itself as the largest corporate holder of the asset. MicroStrategy’s stock fell 4.9% in regular trading, reflecting a broader decline in bitcoin’s price, and dropped another 1.6% in after-hours trading, although shares are still up 300% year-over-year.
Other companies, including Semler Scientific and Metaplanet, have adopted similar strategies by issuing debt to accumulate bitcoin.
