MicroStrategy plans to raise another $500 million for investment in Bitcoin

MicroStrategy announced the issuance of senior convertible notes in the amount of $500 million. This is the second issue recently.

Let us remember that here we are talking about debt securities, the holders of which will receive a certain advantage in the event of liquidation of the company.

According to the official press release, the bonds mature on March 15, 2031. Interest will be paid every six months starting September 15, 2024. The first redemption date is March 22, 2028.

It is noteworthy that the company noted that it reserves the right to choose the form of repayment of bonds. This could be fiat or MicroStrategy shares.

“We intend to use the net proceeds from the sale of the notes to purchase additional Bitcoin and for general corporate purposes,” the release said.

This is the company's second issue recently. In early March 2024, MicroStrategy announced the issuance of $600 million in bonds maturing in 2030.

Following this, the company purchased an additional 12,000 BTC for $821 million. As of March 14, 2024, the company controls 205,000 BTC with an average purchase price of $33,706.

On March 13, 2024, Bitcoin reached a new all-time high of $73,650. At the time of writing, the asset is trading at $73,480, according to TradingView. In this case, MicroStrategy's unrealized gain is $8.1 billion.

It is noteworthy that the Coinbase exchange followed MicroStrategy’s example. The company announced a $1 billion bond issue.