Michael Saylor’s MicroStrategy Plans to Raise $700M to Buy More Bitcoin

MicroStrategy, the largest corporate reserve holder of Bitcoin with over $14 billion worth, announced Monday that it plans to buy even more Bitcoin as part of a private offering of $700 million worth of convertible senior notes.The firm said that it will use proceeds from the sale to redeem $500 million in previous senior secured notes that are due in 2028, with an expected total cost of $523.8 million including interest. MicroStrategy then plans to use any remaining proceeds to purchase more Bitcoin and for general corporate purposes.Senior notes are a form of debt a company can issue to investors. Convertible notes can be turned into company equity by the buyer. MicroStrategy uses the issued debt to buy more Bitcoin. MicroStrategy Announces Proposed Private Offering of $700M of Convertible Senior Notes $MSTR https://t.co/OCq7wj2u0P— Michael Saylor⚡️ (@saylor) September 16, 2024MicroStrategy now holds 244,800 Bitcoin—about $14.2 billion worth—after announcing its most recent purchase on Friday.Bitcoin is MicroStrategy And so far, so good—MicroStrategy stock (Nasdaq: MSTR) is up over 800% since it started putting the digital asset on its balance sheet, while its Bitcoin is collectively worth 50% more than what it paid based on the average cost per coin.The company now classifies itself as a “Bitcoin development company” and investors buy equity in the software company to gain exposure to the biggest and oldest digital coin. Saylor has Editor’s note: This story was updated with after publication with additional details.Edited by Andrew Hayward