MicroStrategy doubles down on Bitcoin, proposes $700M convertible notes to fund BTC acquisition

Key Takeaways

• MicroStrategy wants to use new $700M note issuance to manage debt and expand Bitcoin reserves.
• Recent purchase boosts MicroStrategy's bitcoin holdings to 244,800 BTC, reinforcing its position as a major corporate holder.

MicroStrategy, a pioneer in corporate Bitcoin adoption, announced today its plan to offer $700 million in convertible senior notes to qualified institutional buyers. The company intends 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’s common stock, MicroStrategy stated in a Monday press release.

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

This will not be the first time MicroStrategy issues notes to fund its Bitcoin acquisition. Earlier in June, the company upscaled its convertible note offering by 40% to $700 million for Bitcoin acquisitions , with the notes maturing in June 2032.

The latest announcement comes shortly after MicroStrategy disclosed buying $1.1 billion worth of Bitcoin, boosting its holdings to 244,800 BTC. With steady accumulations, the company’s Bitcoin investment will soon hit $10 billion.

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