MicroStrategy plans to buy additional Bitcoin after selling $700 million of convertible notes

• MicroStrategy plans to issue $700 million of convertible senior notes to institutional investors.
• Proceeds from the notes will be used to redeem debt and other Bitcoin tokens.
• Bitcoin is down more than 2% in the last 24 hours.

MicroStrategy (MSTR) plans to increase its Bitcoin (BTC) holdings after announcing a $700 million convertible note offering on Monday. The announcement comes after Bitcoin’s $1.11 billion purchase a few days ago.

MicroStrategy will accelerate the pace of Bitcoin accumulation

Business intelligence firm MicroStrategy has announced plans to buy back debt and buy additional Bitcoin following its $700 million private offering of senior convertible notes — subject to market conditions — to institutional investors.

The notes will be unsecured, senior obligations of MicroStrategy and will bear interest payable semi-annually in arrears. The company also noted that the proceeds from the offering will go toward debt redemptions and additional Bitcoin.

“MicroStrategy intends to use the net proceeds from this offering to repurchase all of $500.0 million in aggregate principal amount outstanding of MicroStrategy’s 6.125% Senior Secured Notes due 2028 (the “Senior Secured Notes”) and to use any balance of the proceeds net to acquire additional bitcoin and for general corporate purposes,” the company stated in its press release.

The company’s latest move comes after its $1.11 billion purchase of 18,300 BTC using funds raised from its share sale. The purchase brought its total Bitcoin holdings to 244,800 BTC — more than 1% of the total Bitcoin supply — with a 17% year-to-date gain, CEO Michael Saylor confirmed on Friday.

MicroStrategy began its aggressive Bitcoin acquisition strategy in August 2020, following a restructuring of its corporate treasury strategy to make the leading cryptocurrency one of its core assets. Since then, Michael Saylor has become one of the most influential figures in the Bitcoin community.

Bitcoin is struggling below $58,000, down more than 2% in the last 24 hours.