MicroStrategy Announces $500M Convertible Notes to Increase Bitcoin Holdings
MicroStrategy, a Nasdaq-listed business intelligence firm, has announced plans to offer $500 million in convertible senior notes due 2032. The notes, which will be offered privately to qualified institutional buyers under Rule 144A of the Securities Act of 1933, will bear interest paid semi-annually starting on December 15, 2024. The company has also provided an option for initial purchasers to buy an additional $75 million in aggregate principal amount of the notes within a 13-day period from the issuance date.
The primary use of the funds raised through this offering will be to acquire additional Bitcoin and for general corporate purposes. As of now, MicroStrategy holds 214,400 BTC, valued at over $14 billion, making it the largest public-listed Bitcoin holder. This move aligns with the company’s long-term strategy to use Bitcoin as a treasury reserve asset, reflecting its belief in Bitcoin's potential for long-term appreciation and as a hedge against inflation. The offering is subject to market conditions, and there is no certainty regarding its completion or the terms under which it may be finalized.
