Wed Sep 18 02:38:50 UTC 2024: ## MicroStrategy to Sell $700 Million in Convertible Notes to Fund Bitcoin Purchase

**Washington, D.C.** – MicroStrategy, a leading business intelligence and cloud-based services company, announced plans to raise $700 million through the sale of senior convertible notes. This move, aimed at further bolstering the company’s Bitcoin holdings, is a strong indication of the firm’s continued bullish stance on the cryptocurrency.

The $700 million offering will be made to qualified institutional buyers under Rule 144A of the Securities Act of 1993. Funds generated from the sale will be used to redeem $500 million of MicroStrategy’s outstanding 6.125% Senior Secured Notes due in 2028. Any remaining proceeds will be allocated to purchasing additional Bitcoin and general corporate purposes.

This latest move follows MicroStrategy’s recent acquisition of 18,300 Bitcoin for $1.11 billion, bringing its total Bitcoin holdings to over 244,800, worth approximately $9.45 billion. The company, which holds over 1% of Bitcoin’s circulating supply, is currently the largest institutional holder of the digital asset.

“MicroStrategy intends to use the net proceeds from this offering to redeem all $500 million outstanding aggregate principal amount of MicroStrategy’s 6.125% Senior Secured Notes due 2028… and to use any balance of the net proceeds to acquire additional bitcoin and for general corporate purposes,” stated the company in its press release.

The move reflects MicroStrategy’s commitment to Bitcoin, a commitment spearheaded by the company’s Founder and Chairman, Michael Saylor, a vocal advocate for the cryptocurrency.

The convertible notes will mature by September 15, 2028, and will attract interest twice a year, starting from March 15, 2025. Investors will have the option to convert the notes into cash, MicroStrategy’s Class A common stock, or a combination of both, subject to the company’s discretion and market pricing.

Following the announcement, MicroStrategy’s stock, MSTR, saw a surge of over 8% on Friday, September 13, reflecting investor confidence in the company’s Bitcoin strategy.

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