According to an official press release, U.S.-listed company MicroStrategy plans to sell up to $700 million worth of convertible senior notes to raise funds to buy more Bitcoin and repurchase corporate debt. This is the company’s third issuance in 2024. corporate bonds.
MicroStrategy Announces Proposed Private Offering of $700M of Convertible Senior Notes $MSTR https://t.co/OCq7wj2u0P
— Michael Saylor (@saylor) September 16, 2024
The private offering will be "subject to market conditions," and the notes will mature in 2028, according to the press release. The notes are MicroStrategy's Senior Unsecured Bonds and will pay interest twice annually.
MicroStrategy's total debt reached $3.9 billion as of June 2024. And according to SEC filings, the company has purchased 244,800 Bitcoins worth nearly $10 billion, including 18,300 Bitcoins purchased last week.
In a press release, the company stated:
“MicroStrategy intends to use the net proceeds from this offering to redeem all of its $500 million 6.125% secured senior notes due 2028 and will use the remaining net proceeds to purchase additional Bitcoin. and for general corporate purposes.”
Since it began buying Bitcoin in 2020, the company has purchased $9.5 billion worth of Bitcoin at an average cost of $38,585 per coin.
Source
