The largest corporate owner of Bitcoin in the world is looking to raise funds to expand its cryptocurrency holdings. Microstrategy has announced its plans to offer $500 million worth of convertible senior notes in a private offering.
These notes, which are a type of bond that can be held until maturity or converted into the issuer’s common stocks, will be sold to institutional buyers and will mature on June 15th, 2032. The company intends to use the funds raised to purchase more Bitcoin and for general corporate purposes.
The notes will be unsecured, senior obligations of MicroStrategy and will accrue interest payable semi-annually in arrears on June 15 and December 15 of each year, starting on December 15, 2024. MicroStrategy also has the option to redeem all or part of the notes for cash after June 20, 2029.
However, the proposed offering is contingent on market conditions and other factors, and there is no guarantee on when or under what terms it will be completed. Currently, MicroStrategy holds 214,400 BTC, valued at $14.260 billion at the current price of $66,514. The company purchased the cryptocurrency at an average price of $35,158, totaling $7.538 billion.
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