MicroStrategy to Raise $700 Million for Bitcoin Acquisition and Note Redemption
MicroStrategy is set to raise $700 million by offering convertible senior notes to institutional investors.
The company plans to utilize the funds to buy more Bitcoin and pay off existing senior secured notes.
These new notes will carry semi-annual interest and are set to mature in 2028. Investors will have the option to convert them into cash or shares of MicroStrategy’s common stock.
The company also plans to redeem its $500 million in senior secured notes maturing in 2028 at a premium on September 26, 2024, using part of the proceeds.
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This move follows an earlier issuance of convertible notes in June, which increased by 40% to $700 million for Bitcoin purchases, with notes maturing in 2032.
Recently, MicroStrategy invested $1.1 billion in Bitcoin, pushing its total holdings to 244,800 BTC. With this ongoing investment strategy, the company’s Bitcoin assets are nearing $10 billion. MicroStrategy remains the largest corporate holder of Bitcoin, with its reserves now constituting 1.16% of the total Bitcoin supply.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
