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MicroStrategy Incorporated has unveiled plans to offer $700 million in convertible senior notes due 2028, aiming to further its aggressive Bitcoin acquisition strategy. The notes, not registered under US securities laws, are targeted at qualified institutional buyers and will mature on September 15, 2028, featuring semi-annual interest payments starting March 2025. This move is part of a larger scheme to redeem $500 million in senior secured notes and potentially increase its Bitcoin holdings.
In addition to the main issuance, the company will provide an option for the initial buyers to acquire an extra $105 million in notes within 13 days post-issuance. The strategy includes a notice to redeem outstanding senior secured notes by September 26, 2024, which will free up the 69,080 Bitcoin currently held as collateral.
Since 2020, MicroStrategy has emerged as a major corporate player in the cryptocurrency realm, amassing over 244,800 BTC valued at roughly $14.2 billion. With multiple note offerings totaling billions since its initial foray into Bitcoin, the company continuously leverages its financial maneuvers to maintain its status as the largest corporate Bitcoin holder.
