MicroStrategy plans to increase its Bitcoin investment with a bond offering.

Enterprise software company MicroStrategy (MSTR) today announced a $500 million convertible senior note offering to increase the amount of Bitcoin in its portfolio.

The notes, which are unsecured and senior obligations of MicroStrategy, will mature on June 15, 2032 and have semiannual coupon payments. The bonds to be offered by the company are seen as less risky assets as they can be converted into shares and have priority payment in case of possible bankruptcy. However, the ability of bonds to be converted into shares can be seen as a more attractive investment tool for investors as it offers potential returns.

MicroStrategy also made the following statement regarding the bond offering:

"MicroStrategy also intends to grant to the initial purchasers of the notes an option to purchase up to $75 million in the aggregate principal amount of the notes within a 13-day period from the date the notes are first issued. The offering is subject to market and other conditions and is limited to whether or when the offering will be completed. "No assurance can be given as to whether it will be completed or under what conditions it will be completed."

The target audience for the bond offering was determined to be qualified institutional buyers utilizing Rule 144A under the Securities Act of 1933. The notes will be convertible into cash, shares of MicroStrategy's Class A common stock, or a combination thereof, at the company's discretion.

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