MicroStrategy to expand Bitcoin stash with $500 million convertible notes offering

MicroStrategy has announced today a private offering of $500 million in convertible senior notes to acquire more Bitcoin (BTC). The notes, unsecured senior obligations of MicroStrategy, will pay interest semi-annually with a maturity date of June 15, 2032.

“MicroStrategy also expects to grant to the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $75 million aggregate principal amount of the notes. The offering is subject to market and other conditions, and there can be no assurance as to whether, when or on what terms the offering may be completed,” points out the announcement.

The offering targets qualified institutional buyers, leveraging Rule 144A under the Securities Act of 1933. They will be convertible into cash, shares of MicroStrategy’s class A common stock, or a combination thereof, at the company’s discretion. The conversion terms will be set upon pricing of the offering.

This is the third convertible notes offering by the tech company in 2024, amounting to $1.6 billion. The first one was conducted in March and sold $600 million, followed by a second one nearly a week later that sold $500 million.

MicroStrategy currently has 214,440 BTC worth $14,4 billion, according to a dashboard by CryptoQuant. The company’s unrealized profit stands at nearly $7 billion.

Notably, MicroStrategy broke its 6-month buying streak in May, being the first month with no Bitcoin investments by the company since November last year.