MicroStrategy Plans $700M Note Sale, Doubles Down on Bitcoin Strategy
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- MicroStrategy plans to sell up to $700 million in convertible senior notes to fund Bitcoin purchases and debt repayment.
- The company aims to use $500 million to pay off existing notes and the remainder for Bitcoin acquisition and corporate expenses.
Michael Saylor is probably one of the biggest advocates of Bitcoin, and his company MicroStrategy also proves it with its Bitcoin-acquiring initiatives.
On Monday, MicroStrategy, a Nasdaq-listed bitcoin development firm, announced that it plans to sell up to $700 million in convertible senior notes to fund additional BTC purchases and buy back debt.
According to a press release, the company plans to use the money raised from the offering to pay off $500 million in senior secured notes, which have a 6.125% annual yield and are due in 2028. The remaining funds will go toward buying more Bitcoin and covering general corporate expenses.
Additionally, the company will give the initial buyers an option to purchase up to an extra $105 million in notes within 13 days of the first issue. The company mentioned it may choose to redeem all or part of the notes for cash starting December 20, 2027, under certain conditions.
ALSO READ: Japanese Investment Firm Metaplanet Secures $6.8M Loan to Expand Bitcoin Holdings
Led by Executive Chairman Michael Saylor, the firm began buying Bitcoin in 2020, making it a key part of its treasury. It has since become the largest corporate Bitcoin holder, accumulating 244,800 BTC, currently valued at about $14.2 billion. Just a few days ago, MicroStrategy announced another Bitcoin purchase worth $1.1 billion, leaving $900 million still available from a previous offering.
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