MicroStrategy sells $1bn of debt to buy more bitcoin

Team Luno
Back to blog


1 minute read

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.

Avatar Team Luno
Author

Team Luno

On our way to the moon, we write about all things crypto. And don’t forget we’re humans too. Our blog conveys the views of Luno and the many unique opinions and characters within our team. We’ll never provide you with financial advice, and we urge you to conduct your own research before purchasing or trading any cryptocurrencies. It’s a brave new world out there, and the market can be volatile at times, so never trade with funds you can’t afford to lose. Want to let us know how much you love our blog? Tweet us @LunoGlobal.

It’s never too late to get started

Buy, store and learn about cryptocurrency today

Desktop Icon Apple App Store Logo Google Play Store Logo