MicroStrategy made headlines again last week as it completed its offering of $1.05bn in convertible senior notes – a type of debt security that can either be converted into shares or bought back by the issuer. The notes are set to mature in 2027, but can be bought back by MicroStrategy in 2024.
It announced the debt-sell off early last week and said it “intends to use the net proceeds from the sale of the notes to acquire additional Bitcoin”, without specifying an exact amount.
This isn’t the first time MicroStrategy’s used this tactic – in December, it sold $400m in convertible senior notes and then bought $10m worth of Bitcoin in January.
With Bitcoin evangelist Michael Saylor at the helm, the company is currently sitting on over 70,000 Bitcoin, worth around $3.4bn at the time of writing.