MicroStrategy has announced its intention to further increase its Bitcoin holdings with the funds raised. The company plans to issue convertible senior notes with a face value of $500 million, with interest payments due semi-annually starting in December 2024.
Under the leadership of Michael Saylor, MicroStrategy is once again betting on the cryptocurrency industry. The company has previously used this strategy to boost its Bitcoin holdings and is now launching a private issuance of convertible senior notes for $500 million. These notes, targeted at institutional buyers, will mature in 2032.
In line with its strategy of using debt to expand its cryptocurrency holdings, MicroStrategy will primarily use the funds to purchase more Bitcoin. The convertible senior notes, despite being unsecured, will pay interest semi-annually, with the first payment scheduled for December 2024 and maturity set for June 2032.
Traders have the option to convert the notes into cash, shares of MicroStrategy’s class A common stock, or a combination of both, starting in December 2031. However, full conversion will only be allowed just before maturity.
