MicroStrategy Announces Plan To Raise $500,000,000 in New Debt To Buy More Bitcoin (BTC)

The world’s largest corporate Bitcoin (BTC) owner wants to raise funds to further bolster its crypto holdings.

In a new statement, Microstrategy says it is planning to offer $500 million worth of convertible senior notes in a private offering.

Convertible senior notes are a type of bond that allows investors to hold until maturity or convert into the issuer’s shares of common stocks.

Microstrategy says the notes will be offered and sold to institutional buyers and will mature on June 15th, 2032. The plan is to use the proceeds to buy additional Bitcoin and for general corporate purposes.

“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. 

Subject to certain conditions, on or after June 20, 2029, MicroStrategy may redeem for cash all or any portion of the notes.”

The software company says the proposed offering is subject to market and other conditions.

“There can be no assurance as to whether, when or on what terms the offering may be completed.”

MicroStrategy now holds 214,400 BTC, which is worth $14.260 billion at the current price of $66,514. The software company bought the crypto asset at an average purchase price of $35,158 for a total cost of $7.538 billion.

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