MicroStrategy, led by CEO Michael Saylor, is making waves in the cryptocurrency world once again. The software company has announced an upsized convertible senior notes offering, increasing the amount from $500 million to $525 million.
The purpose of this offering? To acquire more Bitcoin, of course. This move aligns with MicroStrategy’s strategy since 2020 of using its balance sheet to accumulate the leading cryptocurrency.
The convertible senior notes, due in 2031, have an annual interest rate of 0.875% and will be sold at 100% of the principal amount. Holders have the option to convert the notes into cash, shares of MicroStrategy’s class A common stock, or a combination of both.
With an estimated net proceeds of approximately $515 million after fees and expenses, MicroStrategy is poised to further increase its Bitcoin holdings. The company currently holds over 200,000 bitcoins, valued at over $13 billion.
CEO Michael Saylor has been vocal about his vision of positioning MicroStrategy as the world’s first “Bitcoin development company.” While details on this proposal remain scarce, the company has previously released alpha applications, such as a tool for businesses to reward employees with Bitcoin lightning payments.
MicroStrategy’s aggressive approach to Bitcoin accumulation reflects a growing trend among corporations to view the cryptocurrency as both an emerging asset class and a hedge against debasement and inflation. As more companies follow suit, the future of Bitcoin as a treasury asset looks promising.
