MicroStrategy is planning to raise $500 million through a convertible senior note offering. This offering, with an option for an additional $75 million, will be made to qualified institutional investors and is subject to market conditions and other factors.
The notes, which are due in 2032, will be unsecured and pay interest every six months. They can be converted into cash, MicroStrategy class A common stock, or a combination of both.
According to a statement released on Thursday, MicroStrategy plans to use the funds raised for “acquiring more Bitcoin and for general corporate purposes.” This move is in line with the company’s strategy of using debt financing to increase its Bitcoin holdings.
By issuing convertible notes, MicroStrategy can manage its debt while potentially benefiting from any increase in equity value.
