MicroStrategy to Buy Even More Bitcoin With $700M Debt Offering

MicroStrategy is planning to buy even more Bitcoin with another $700 million worth of convertible senior notes.

In an announcement, the tech giant said it plans to use proceeds from its sale to redeem $500 million in senior secured notes due in 2028, with a total cost of $523.8 million, including interest. Any remaining funds will be used to buy more Bitcoin and for general corporate purposes.

MicroStrategy made a similar move in March when it raised $700 million through convertible senior notes to buy more Bitcoin.

MicroStrategy Ups its Convertible Debt Offering to $700m to Buy More Bitcoin

Earlier this week MicroStrategy chairman Michael Saylor revealed the firm intended to raise $600m in the form of senior convertible notes to buy Bitcoin. It’s now $700m.

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The new notes, secured by 69,080 Bitcoins, are set to mature in 2028 and will be offered to institutional investors.

MicroStrategy recently acquired 18,300 BTC for $1.11 billion and currently holds 244,800 BTC valued at $14.15 billion after a 50% gain.

MicroStrategy chairman Michael Saylor has retained his bullish Bitcoin stance, stating he will continue to buy the world's biggest cryptocurrency forever.

MicroStrategy Buys More Bitcoin But Michael Saylor Sells More Company Shares

MicroStrategy has bought another 12,000 BTC but its Chairman, Michael Saylor, has sold 205,000 MSTR stock over the past year.

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“I’m going to be buying the top forever, Bitcoin is the exit strategy," he said earlier this year, adding that the cryptocurrency is stronger than gold. “We believe capital is going to keep flowing from those asset classes into Bitcoin because Bitcoin is technically superior to those asset classes and that being the case, there’s just no reason to sell the winner and to buy the losers.”

MicroStrategy's stock price is up almost 300% over the year, while Bitocin is up just shy of 120%.