coinspress.com
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.