[NEWS] MicroStrategy to raise $600 million to buy Bitcoin

Business intelligence company MicroStrategy announced on the 5th that it will raise $600 million by offering convertible notes due in 2030 to buy Bitcoin (BTC).

According to the announcement, MicroStrategy plans to sell $600 million of convertible notes to be used to acquire additional Bitcoin and for general corporate purposes. The offering will be made to qualified institutional buyers pursuant to the rules of the Securities Act of 1933.

MicroStrategy's senior unsecured debt will pay interest semi-annually. The notes mature on March 15, 2030. The first interest payment is scheduled to be paid on September 15, 2024, unless earlier repurchased, redeemed or converted in accordance with the terms of the notes.

The notes are exchangeable for cash, MicroStrategy's Class A common stock, or a combination of both, providing investors with a versatile financial product aligned with the company's growth and investment strategies. The exchange terms, including the rate and price, will be determined based on the pricing of the bonds.

Chairman Michael Saylor said, "We will continue to hold Bitcoin and have no plans to sell it now or in the future."

The company holds approximately 193,000 BTC, purchased at an average acquisition price of $31,550 (approximately 4.74 million yen) for a total cost of approximately $6.1 billion (approximately 918 billion yen). The total assets held are over $13 billion (approximately 1.9566 trillion yen), making it the largest publicly traded company in terms of Bitcoin holdings.

MicroStrategy's stock price has risen 94.70% following the rise in Bitcoin since the beginning of the year. It has risen by 461.8% compared to the past 12 months.

Reference: Announcement
Image: Shutterstock

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