MicroStrategy, the leading corporate holder of Bitcoin, announces its intention to raise $600 million through senior convertible notes to further expand its Bitcoin holdings.
Senior convertible notes are debt securities with the option to convert into equity in the future. They hold priority over common stock in case of bankruptcy or liquidation.
MicroStrategy plans to use the net proceeds from the notes sale to acquire more Bitcoin for general corporate purposes.
Initial purchasers of the notes may also have the option to acquire an additional $90 million aggregate principal amount of notes.
The notes are set to mature on March 15, 2030, and can be converted into cash, MicroStrategy’s class A common stock, or a combination of both.
MicroStrategy’s stock rises by over 2% following the announcement. Meanwhile, Bitcoin’s price surges by 8.1% over the last 24 hours, nearing its all-time high.
MicroStrategy holds 193,000 BTC, valued at $13 billion, with an average buy price of $31,550. The firm has seen substantial gains on its Bitcoin investment, with its stock up by 172% over the month.
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