MicroStrategy Plans $700M Convertible Note Offering to Boost Bitcoin Holdings

MicroStrategy (MSTR), listed on Nasdaq, has revealed plans to issue $700 million in convertible senior notes, maturing in 2028. The company, known for its aggressive Bitcoin strategy, aims to use part of the funds to redeem $500 million in secured notes due the same year.

Bitcoin and Debt Reduction

According to a press release, MicroStrategy will utilize the raised capital to pay off its senior secured notes, which carry a 6.125% annual yield. The remaining funds will go toward purchasing additional Bitcoin (BTC) and other corporate purposes. The company has a history of allocating significant resources to Bitcoin, which it adopted as a reserve asset in 2020.

In addition, the company will grant an option to the initial note buyers, allowing them to purchase up to an additional $105 million in principal within 13 days from the initial issuance. MicroStrategy may choose to redeem part or all of these notes on or after December 20, 2027, depending on specific conditions.

Led by Executive Chairman Michael Saylor, MicroStrategy has solidified its position as the largest corporate holder of Bitcoin. To date, the firm has amassed 244,800 BTC, currently valued at around $14.2 billion. Recently, the company disclosed a further acquisition of $1.1 billion in Bitcoin, leaving it with $900 million from a previous offering for potential future purchases.