MicroStrategy has announced plans to raise $700 million through a private offering of convertible senior notes. This announcement comes on the heels of the company's recent $1.11 billion Bitcoin acquisition.
Funding Plan
MicroStrategy plans to conduct a private offering of convertible senior notes, due in 2028. According to the press release, the notes will be unsecured and will accrue interest, payable semi-annually starting March 15, 2025. They will mature on September 15, 2028, unless converted or repurchased earlier.
Recent Bitcoin Acquisitions
This marks MicroStrategy’s third debt offering in 2024 aimed at expanding its Bitcoin holdings. The company recently acquired $1.11 billion worth of Bitcoin, part of its strategy to increase its Bitcoin portfolio.
Use of Funds
The proposed funds will be used to repay $500 million in outstanding senior secured notes and to acquire additional Bitcoin. The remainder will be allocated for general corporate purposes.
In conclusion, MicroStrategy continues to follow its strategy of increasing its Bitcoin assets using various financial instruments to achieve this goal.
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