NEW YORK, Wednesday, September 18, 2024- MicroStrategy has announced plans to raise $700 million through the issuance of convertible senior notes due in 2028.
The company says it intends to use the proceeds from this offering to further expand its Bitcoin holdings.
The announcement said that the private placement would be made available to qualified institutional buyers under Rule 144A of the Securities Act of 1933.
In addition to the $700 million, MicroStrategy has granted initial purchasers an option to acquire an additional $105 million in notes.
The company’s decision to issue convertible notes comes as it seeks to capitalize on the recent surge in Bitcoin prices.
The proceeds from the offering will be used to redeem MicroStrategy’s existing $500 million Senior Secured Notes due in 2028.
This redemption will take place on September 26, contingent upon the successful sale and settlement of the new convertible notes.
As of July 31, MicroStrategy held 226,500 bitcoins, with an aggregate purchase price of approximately $8.3 billion.
MicroStrategy, a business intelligence firm led by Michael Saylor, has established itself as the largest corporate holder of Bitcoin, amassing approximately 214,400 BTC as of mid-2024.
The firm’s Bitcoin holdings are valued at around $13.5 billion, reflecting a substantial paper profit since their initial investments.
