MicroStrategy to Raise $500 Million via Convertible Bonds for Bitcoin Acquisition
MicroStrategy, the Nasdaq-listed business intelligence company, has announced its intention to raise $500 million through a convertible debt offering to increase its Bitcoin holdings.
The offer, which was announced by MicroStrategy, involves senior convertible bonds with a total principal amount of $500 million, maturing in 2032. These bonds will be unsecured and have a senior ranking, with interest paid semi-annually on June 15 and December 15 of each year, starting from December 15, 2024.
The completion of this offering is subject to market conditions, and there is no guarantee of the finalization date or terms of the transaction. The company reserves the right to redeem all or part of the bonds for cash after June 20, 2029, under certain conditions.
Objectives and Implications of the Investment
The funds raised through this debt offering will be primarily used for the acquisition of additional BTC, as well as for other corporate purposes. This strategy reflects MicroStrategy’s ongoing commitment to integrate Bitcoin as a reserve asset, a policy initiated in 2020 that has transformed the company’s financial structure and reputation in the global market.
Context and Positioning of MicroStrategy
To date, MicroStrategy holds 214,400 BTC, equivalent to over $14 billion, making it the largest Bitcoin holder among publicly traded companies. The adoption of Bitcoin as a reserve asset has been a major strategic decision for the company, reflecting a deep conviction in the long-term potential of this cryptocurrency.
The offering is limited to qualified institutional buyers in accordance with Rule 144A of the Securities Act of 1933.
