MicroStrategy Plans to Sell $700 Million Convertible Bonds! To Repurchase Corporate Debt and Increase Bitcoin Holdings
MicroStrategy to Issue $700 Million in Convertible Notes to Buy More Bitcoin and Repay Debt
According to an official press release, publicly traded company MicroStrategy plans to sell up to $700 million worth of convertible senior notes to raise funds for further Bitcoin purchases and debt repayment. This marks the company's third debt offering in 2024.
MicroStrategy Announces Proposed Private Offering of $700M of Convertible Senior Notes $MSTR https://t.co/OCq7wj2u0P
— Michael Saylor⚡️ (@saylor) September 16, 2024
The press release states that this private offering will be "subject to market conditions" and the notes will mature in 2028. These notes are senior unsecured bonds and will pay interest twice a year.
As of June 2024, MicroStrategy's total debt reached $3.9 billion. According to SEC filings, the company has purchased 244,800 Bitcoin, worth nearly $10 billion, including 18,300 Bitcoin bought last week.
The company stated in the press release:
"MicroStrategy intends to use the net proceeds from this offering to redeem all of its $500 million aggregate principal amount of 6.125% senior secured notes due 2028, and to use the remaining net proceeds to purchase additional Bitcoin and for general corporate purposes."
Since starting its Bitcoin buying spree in 2020, the company has purchased a total of $9.5 billion worth of Bitcoin, with an average cost per coin of $38,585.
