See More

MicroStrategy Plans to Buy More Bitcoin With $500 Million Bond Sale

2 mins
Updated by Harsh Notariya
Join our Trading Community on Telegram

In Brief

  • MicroStrategy aims to buy more Bitcoin using proceeds from a $500 million convertible senior notes offering.
  • The firm’s Bitcoin holdings are currently valued at over $14 billion, with significant unrealized gains.
  • Convertible notes may convert to stock or cash, and buyers can potentially increase the raise to $575 million.
  • promo

MicroStrategy has unveiled a strategic initiative to augment its Bitcoin (BTC) holdings. It announced an offering of $500 million in convertible senior notes due 2032.

This move, targeted at qualified institutional buyers, highlights the firm’s commitment to Bitcoin as a central investment asset.

MicroStrategy’s Bitcoin Portfolio is Worth Over $14 Billion

These convertible senior notes offer a dual benefit, allowing holders to convert their investment into company stock under predefined conditions. Structured as unsecured and senior, these notes ensure priority in repayment over other debts and equity should bankruptcy occur.

MicroStrategy has set interest payments on a semi-annual basis. The full maturity of the principal is set for June 2032 unless actions such as redemption or conversion occur sooner.

Read more: Who Owns the Most Bitcoin in 2024?

Highlighting the flexibility of this financial tool, MicroStrategy may allow initial buyers to acquire an additional $75 million in notes within the first 13 days post-issuance, potentially increasing the total raise to $575 million.

“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional Bitcoin and for general corporate purposes,” the firm announced.

Currently, MicroStrategy holds 214,400 BTC, valued at roughly $14.59 billion, yielding an unrealized profit of over 92.37%.

MicroStrategy Bitcoin Portfolio
MicroStrategy Bitcoin Portfolio. Source: Saylortracker

Furthermore, MicroStrategy has been at the forefront of incorporating blockchain technology into its business model. The recent introduction of the Orange protocol at its annual event exemplifies this. Orange employs Bitcoin’s blockchain to secure digital identities, which marks a significant stride in blockchain utilization for data security.

The specifics of the note conversion, to be determined at pricing, will offer flexibility in terms of converting into either MicroStrategy’s class A common stock or cash. This feature makes the notes appealing to investors seeking both safety and potential upside.

Read more: Top 11 Public Companies Investing in Cryptocurrency

MicroStrategy’s dual focus on expanding its Bitcoin reserves and its blockchain applications reflects a comprehensive strategy aimed at financial growth and technological leadership.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2264-1.png
Harsh Notariya
Harsh Notariya is a journalist at BeInCrypto, who writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created educational reports on...
READ FULL BIO
Sponsored
Sponsored