MicroStrategy Proposes $500M Convertible Notes to Boost Bitcoin Stash

MicroStrategy proposes $500 million debt sale to increase BTC stock.

The Nasdaq-listed firm currently holds 214,400 BTC.

Nasdaq-listed business intelligence company and bitcoin holder MicroStrategy (MSTR) announced Thursday that it plans to offer an aggregate principal amount of $500 million in convertible senior notes due 2032, the proceeds of which will be used to purchase additional bitcoin and other corporate engagements.

The notes will be unsecured, will be senior obligations of MicroStrategy, and interest will be paid semiannually in arrears on June 15 and December 15 of each year, beginning December 15, 2024. The offer is subject to market conditions and no payment will be made. It guarantees when and under what conditions it can be completed. Subject to certain conditions, the company will be able to convert all or part of the bonds into cash on or after June 20, 2029.

Persons who qualify as institutional buyers under Rule 144A of the Securities Act of 1933 will be eligible for the private offering.

MicroStrategy currently owns 214,400 BTC, worth over $14 billion, making it the largest publicly traded bitcoin holder. The company began accumulating the leading cryptocurrency in 2020 and adopting it as a reserve asset.