MicroStrategy to buy more Bitcoin after raising $500m

MicroStrategy plans to offer $500 million worth of convertible senior notes, with the proceeds to be used to purchase additional Bitcoin (BTC), the company announced Thursday. Notes mature in 2032.

MicroStrategy on Thursday announced plans to offer qualified institutional buyers the opportunity to purchase unsecured convertible senior notes maturing in 2032.

Stating that the private offering will depend on market conditions and other factors, the company said that interest will be paid on these notes semi-annually and on a deferred basis every June 15 and December 15.

This will continue until maturity on June 15, 2032, unless the notes are repurchased, redeemed or converted pursuant to the terms of the offering.

MicroStrategy may convert all or part of the banknotes into cash, depending on the circumstances.

“Noteholders will have the right to request that MicroStrategy repurchase all or part of their notes in cash on June 15, 2029,” the US-based firm said.

MicroStrategy will use its proceeds to buy more Bitcoin

According to today’s announcement, the notes will be convertible into cash, shares of the company’s Class A common stock, or a combination of the two.

The reference price in calculating the initial conversion will be the composite volume weighted average of MicroStrategy shares from 9:30 a.m. to 4:00 p.m. EDT on the pricing date.

If the sale goes through, MicroStrategy will use the net proceeds to purchase more Bitcoin to add to the 214,400 BTC the company holds as of April 30, 2024.

The company will also use these funds for other corporate purposes.