MicroStrategy Will Raise $700M to Acquire More BTC
MicroStrategy yesterday announced that it plans to offer $700 million of convertible senior notes due in 2028.
The aim of this offering is to raise funds to redeem $500 million worth of senior secured notes with an annual yield of 6.125%, which are set to mature in 2028.
The remaining proceeds will be used to purchase more Bitcoin and for general corporate purposes, according to the press release. The company will also give initial purchasers of the notes the option to buy an additional $105 million within a 13-day period of the first notes being issued.
Additionally, MicroStrategy may choose to redeem all or part of the notes for cash starting on December 20, 2027, subject to certain conditions.
Under the leadership of Executive Chairman Michael Saylor, MicroStrategy began investing in Bitcoin in 2020, using it as a reserve asset for its treasury.
The company is now the largest corporate buyer of Bitcoin, with 244,800 BTC worth approximately $14.2 billion at current prices.
