MicroStrategy, the top corporate holder of Bitcoin, is planning to secure $700 million via a private offering of convertible senior notes. This capital will be directed towards acquiring more Bitcoin and repaying current BTC-related debt. Under the leadership of Bitcoin proponent Michael Saylor, the company announced on Monday that the funds will be used to redeem $500 million in senior secured notes due in 2028, which will cost approximately $523.8 million including interest.
Any leftover funds will be allocated to general corporate purposes and to further increase MicroStrategy’s Bitcoin reserves. The company currently possesses 244,800 Bitcoin, valued at approximately $14.2 billion, following a recent acquisition.
MicroStrategy began accumulating Bitcoin in 2020, with Saylor emphasizing that the strategy preserves wealth and benefits shareholders. The firm’s stock price (Nasdaq: MSTR) has surged by over 800% since implementing its Bitcoin-focused approach, and the company’s Bitcoin holdings are worth roughly 50% more than what it paid on average per coin.
Saylor has reiterated that MicroStrategy’s plan is to “buy and hold Bitcoin,” emphasizing consistency and transparency in its approach. The company now describes itself as a “Bitcoin development company,” and investors buy MicroStrategy stock to gain exposure to the digital asset. Bitcoin is currently trading at $57,661, while it hit an all-time high of $73,737 earlier this year.