MicroStrategy To Raise $500 Million Using Convertible Notes To Buy Bitcoin

MicroStrategy, the largest corporate holder of Bitcoin, is issuing unsecured senior convertible notes worth $500 million so it can buy even more BTC for its treasury.

In April, MicroStrategy bought an additional 122 BTC, bringing its total Bitcoin holdings to 214,400 BTC, worth approximately $14.52 billion at the time of writing. The company now owns more than 1% of Bitcoin’s total supply, which is capped at 21,000,000 BTC.

This puts MicroStrategy leagues ahead of its competitors, with its Bitcoin reserve exceeding that of the next-biggest corporate holder of BTC, mining giant Marathon Digital, by more than 196,000 BTC.

The notes will bear interest, which will be payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2024.

The notes are set to mature on June 15, 2032, unless they are repurchased, redeemed or converted at an earlier stage.

However, the sale of these senior convertible notes will be limited to qualified institutional investors.

Earlier this month, MicroStrategy founder and chairman Michael Saylor, who is a staunch Bitcoin advocate, softened his stance on Ethereum weeks after the U.S. Securities and Exchange Commission approved Ethereum spot ETFs.

Shares of MicroStrategy Inc. (NASDAQ: MSTR) ended higher in yesterday’s trading session by 3.1%, with the company seeing a staggering 134% upswing since the beginning of the year.

MicroStrategy’s Bitcoin playbook gains traction

Other companies have started following MicroStrategy’s Bitcoin playbook.

Last week, medical technology firm Semler Scientific bought Bitcoin worth $17 million and intends to buy up to $150 million more in the future.

Earlier this month, Canadian firm DeFi Technologies bought 110 BTC, worth $7.6 million at the time of purchase, while Japanese investment firm MetaPlanet bought Bitcoin worth $1.6 million.