MicroStrategy (Nasdaq: MSTR) has announced its third debt offering in 2024, aiming to raise $700 million by issuing convertible senior notes due 2028. The company plans to use the proceeds to pay off its existing $500 million senior secured notes and purchase more Bitcoin. The remaining funds will be used for general corporate purposes. The notes will be unsecured and will begin paying interest starting in March 2025.

MicroStrategy’s move is an ongoing effort to acquire Bitcoin (BTC) as part of its debt-raising strategy. The company is one of the world’s largest publicly traded Bitcoin holders, with 244,800 BTC. However, this large BTC holding is weighing on the company’s financials. In the second quarter of 2024, it reported a net loss of $102.6 million.

Despite analysts’ concerns about its exposure to Bitcoin, MicroStrategy’s stock performance has paid off this risk. The stock price has increased by 295% in the last 12 months, reaching $134 as of September 16. It has gained 96% by 2024.

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