Revamped Microstrategy Plan Issuance of 500 Million Convertible Bonds Fundraising for Further Bitcoin Accumulation

Revamped Microstrategy Plan Issuance of 500 Million Convertible Bonds Fundraising for Further Bitcoin Accumulation

Revamped Microstrategy Plan Issuance of 500 Million Convertible Bonds Fundraising for Further Bitcoin Accumulation

According to the official press release issued by MicroStrategy, the company plans to privately issue a total of $500 million in convertible bonds to qualified institutional buyers, with a maturity date of June 15, 2032. The interest will be paid twice a year on June 15 and December 15. The bonds can be converted into cash, MicroStrategy Class A common stock, or a combination of both at the company’s discretion.

Additionally, MicroStrategy expects to provide initial purchasers with an option to purchase up to an additional $75 million in bonds within 13 days from the date of the initial bond issuance. The completion of this offering is subject to market and other conditions and there is no guarantee as to whether, when, or under what terms the offering will be completed.

MicroStrategy stated that the net proceeds from the bond sale will be used to purchase more Bitcoin and for general corporate purposes. Over the years, MicroStrategy has been raising funds through the issuance of convertible bonds and using the funds for large Bitcoin acquisitions. In March of this year, shortly after announcing a $600 million convertible bond issuance, the company announced the additional purchase of 9,245 Bitcoins for approximately $6.23 billion, investing all the net proceeds from the convertible bond issuance into Bitcoin.

As of now, MicroStrategy holds a total of 214,400 Bitcoins, with an approximate total value of $14.4 billion.