MicroStrategy (MSTR) has announced its third bond offering of 2024, aiming to raise $700 million by issuing long-term convertible senior notes due in 2028. The proceeds will be used to both repay existing debt and purchase more Bitcoin (BTC), further solidifying the company’s strategic focus on cryptocurrency.
Of the $700 million, $500 million will go toward buying back all outstanding bonds, which carry an interest rate of 6.125% and are set to mature in 2028. The remaining $200 million will be allocated to acquiring additional BTC and supporting the company’s general operations.
This announcement follows MicroStrategy’s recent acquisition of $1.1 billion worth of BTC, adding to its already substantial Bitcoin holdings. As of today, the company holds approximately 244,880 BTC, with a market value of $14.2 billion. The average purchase price for MicroStrategy’s BTC is $38,585, with the company currently enjoying a profit of over 50% on its investment.
Since 2020, MicroStrategy has been consistently buying and holding BTC, with CEO Michael Saylor reaffirming that the company has no plans to sell its holdings. By issuing bonds convertible into shares, the company has been able to continue its BTC acquisition strategy despite already holding $3.9 billion in total debt as of June 2024.
Despite a nearly 5% drop in MicroStrategy’s stock price on September 4, MSTR has surged 300% over the past year, with a 96% increase in 2024 alone. The stock is currently trading around $134.5.
MicroStrategy’s Bitcoin-focused strategy is in line with other organizations and nations, such as Tether and El Salvador, which have also turned to BTC as a hedge against inflation.
Related news: Michael Saylor Predicts Bitcoin Could Reach $13 Million in the Next Two Decades
