Blogs & Articles: MicroStrategy Plans To Raise $500 Million for Additional Bitcoin Purchases 🔗 12 weeks ago

MicroStrategy has announced plans to raise $500 million through a private offering of convertible senior notes. The funds are intended to support additional Bitcoin purchases, continuing its strategy of accumulating the asset.

MicroStrategy is currently the largest publicly traded company holding Bitcoin, with over 214,400 Bitcoin valued at $15 billion. Since 2020, under Michael Saylor's direction, the company has adopted Bitcoin as its primary reserve asset.

The company's average purchase price for Bitcoin is approximately $35,000. With Bitcoin trading near $68,000, MicroStrategy's holdings are currently very profitable.

The $500 million will be raised by selling convertible senior notes to qualified institutional buyers. These notes will pay interest semiannually and will mature in 2032 unless converted or redeemed earlier.

According to the announcement, while the funds may be used for general corporate purposes, Bitcoin acquisition remains a priority. The company will also offer initial purchasers an option to buy an additional $75 million of notes.

MicroStrategy's Bitcoin-buying strategy has closely linked its stock performance to Bitcoin's price movements. The company's stock often rises and falls with Bitcoin's price.

With this latest capital raise, MicroStrategy continues to demonstrate its commitment to acquiring more Bitcoin.