MicroStrategy Selling $700 Million in Notes for Bitcoin and Debt Repayment
Business intelligence firm MicroStrategy, known for its large Bitcoin holdings, plans to raise $700 million by selling convertible senior notes. The funds will be used to purchase more Bitcoin and repay outstanding debt. These notes, set to mature in 2028, will be unsecured and pay interest semi-annually.
Significant Bitcoin Holdings
As of June 2024, MicroStrategy's total debt stands at $3.90 billion, while its Bitcoin holdings amount to 244,800 BTC, valued at nearly $10 billion. Last week, the company purchased an additional 18,300 BTC worth over $1 billion. This move further solidifies MicroStrategy’s position as one of the largest Bitcoin holders globally.
Market Impact and Future Plans
The company aims to use the proceeds from this offering to redeem its outstanding senior secured notes and acquire more Bitcoin. This aggressive Bitcoin accumulation strategy has positioned MicroStrategy as a significant player in the crypto space, though its stock has faced recent challenges, losing 4.9% on Monday.
Source: The Block
