MicroStrategy Doubles Down on Bitcoin and Proposes $700M Convertible Notes to Fund BTC Purchase

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MicroStrategy, a pioneer in corporate Bitcoin adoption, today announced its plan to offer $700 million in convertible notes to qualified institutional buyers. The company plans to use the proceeds to redeem senior secured notes and purchase additional Bitcoin.

The notes will bear interest payable semi-annually, mature in 2028 and are convertible into cash or MicroStrategy common stock, MicroStrategy said in a press release on Monday.

As part of the move, MicroStrategy will repurchase $500 million of its outstanding 6.125% senior secured notes due 2028. Redemption will occur on September 26, 2024, at a premium. The company will use the remaining funds to purchase more Bitcoin.

This won’t be the first time MicroStrategy has issued notes to finance its Bitcoin acquisition. In early June, the company increased its supply of convertible notes by 40% to $700 million for Bitcoin purchases, with the notes maturing in June 2032.

The latest announcement comes shortly after MicroStrategy revealed it bought $1.1 billion worth of Bitcoin, increasing its holdings to 244,800 BTC. With steady accumulations, the company’s investment in Bitcoin will soon reach $10 billion.

MicroStrategy is the largest corporate holder of Bitcoin, followed by Marathon Digital with $1.5 billion in Bitcoin. According to Bitcoin Treasuries, MicroStrategy’s Bitcoin holdings now represent 1.16% of the total Bitcoin supply.

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