Microstrategy announces a $700 million convertible note offering, aiming to redeem debt and increase its bitcoin holdings, reinforcing its commitment to BTC as a key asset.
Bollywoodfever: U.S.-based business intelligence firm Microstrategy (Nasdaq: MSTR) has announced plans to raise $700 million through a private offering of convertible senior notes, set to mature in 2028.Â
The company intends to use the funds to redeem $500 million in existing debt and further expand its bitcoin (BTC) portfolio if any funds remain.
The senior secured notes, which carry a 6.125% interest rate, will be redeemed by Sept. 26, 2024, if the offering succeeds. Notably, the notes are secured by 69,080 bitcoins, which will be released upon repayment.
Microstrategy reaffirmed its strategy of using bitcoin as a central part of its treasury reserves, underscoring its continued interest in increasing its BTC holdings.
This move comes just after Microstrategy’s recent acquisition of 18,300 bitcoins for $1.11 billion, bringing its total BTC stash to 244,800 bitcoins, now valued at $14.15 billion.
The company’s bitcoin portfolio has seen a 50% gain, driven by a strategy of regular BTC purchases and the asset’s rising market price.
While MSTR shares dropped by 4.91% on Monday, the stock saw an overall gain of 9.37% over the past week.
With this latest offering, Microstrategy is balancing debt reduction with continued bitcoin accumulation, solidifying its status as the largest bitcoin holder among publicly traded companies—surpassing other major players like Blackrock’s IBIT and Grayscale’s GBTC.
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