MicroStrategy Announces Another $500 Million Note Sale To Buy Bitcoin

MicroStrategy, the world’s largest corporate holder of Bitcoin (BTC), has announced another senior note offering for $500 million, with which proceeds will be used to purchase even more Bitcoin.

At current prices, the next purchase is expected to take the company’s holdings beyond 210,000 coins – over 1% of the entire Bitcoin supply that will ever exist.

  • Per the company’s announcement on Wednesday, the convertible notes are due for repayment in 2031. Their interest rate and initial conversion rate have not been determined yet.
  • “MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes,” the company wrote.
  • Earlier this month, MicroStrategy completed a $700 million convertible note sale for notes due in 2030, bearing a coupon of 0.625% until that time.
  • A subsequent purchase netted the firm 12,000 BTC purchased for under $69,000 per coin, bringing its total stash up to 205,000 BTC. Less than a week later, Bitcoin trades for $73,200 per coin.
  • MicroStrategy’s total Bitcoin portfolio is now up 116% on average, for an unrealized profit of $8 billion.

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