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MicroStrategy Announces Another $500 Million Note Sale To Buy Bitcoin

Summary:
MicroStrategy, the world’s largest corporate holder of Bitcoin (BTC), has announced another senior note offering for 0 million, with which proceeds will be used to purchase even more Bitcoin. At current prices, the next purchase is expected to take the company’s holdings beyond 210,000 coins – over 1% of the entire Bitcoin supply that will ever exist. Per the company’s announcement on Wednesday, the convertible notes are due for repayment in 2031. Their interest rate and initial conversion rate have not been determined yet. “MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes,” the company wrote. Earlier this month, MicroStrategy completed a 0 million convertible note sale for notes

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MicroStrategy, the world’s largest corporate holder of Bitcoin (BTC), has announced another senior note offering for $500 million, with which proceeds will be used to purchase even more Bitcoin.

At current prices, the next purchase is expected to take the company’s holdings beyond 210,000 coins – over 1% of the entire Bitcoin supply that will ever exist.

  • Per the company’s announcement on Wednesday, the convertible notes are due for repayment in 2031. Their interest rate and initial conversion rate have not been determined yet.
  • “MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes,” the company wrote.
  • Earlier this month, MicroStrategy completed a $700 million convertible note sale for notes due in 2030, bearing a coupon of 0.625% until that time.
  • A subsequent purchase netted the firm 12,000 BTC purchased for under $69,000 per coin, bringing its total stash up to 205,000 BTC. Less than a week later, Bitcoin trades for $73,200 per coin.
  • MicroStrategy’s total Bitcoin portfolio is now up 116% on average, for an unrealized profit of $8 billion.

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