MicroStrategy Plans to Raise $500 Million to Boost Bitcoin Holdings

By: Eliza Bennet

MicroStrategy, a prominent player in the crypto sphere, recently stated its intent to raise an additional $500 million via a bond offering to augment its Bitcoin holdings. This move follows closely on the heels of the completion of a similar debt sale press release.

The proposed senior convertible notes will mature on March 15, 2031, while investors are promised bi-annual interest payments. The company also offers an option of an additional $75 million in notes, contingent upon market conditions and demand. Conversion to MicroStrategy’s Class A common stock or cash will begin starting September 15, 2028.

Earlier, MicroStrategy successfully completed a $700 million bond sale. The proceeds were used to purchase 12,000 Bitcoins for $821 million, raising their total Bitcoin stash to approximately 205,000 BTC, equivalent to nearly $15 billion at the time of reporting. The company's executive chairman, Michael Saylor, has championed Bitcoin as the "apex property" and the exit plan, asserting that it is foolish to exchange Bitcoin for a lesser value asset.

Saylor contends Bitcoin as a superior long-term store of value compared to high-value businesses, commercial real estate, and gold, and anticipates its market cap to surge 10x to 100x in the next decade as the crypto adoption increases.