MicroStrategy Inc. announced that it has raised $1.01 billion through the sale of convertible senior notes, with plans to use a portion of the funds to acquire more Bitcoin and redeem higher-yielding debt. Between September 13 and September 19, the company spent $458 million of the proceeds to buy additional Bitcoin. With these new acquisitions, MicroStrategy now holds approximately $15.8 billion worth of the cryptocurrency, solidifying its position as the largest publicly traded corporate holder of Bitcoin.
Saylor’s Bitcoin Strategy
Since 2020, MicroStrategy’s co-founder and chairman, Michael Saylor, has embraced Bitcoin as a central part of the company’s strategy. This move has essentially transformed the Virginia-based enterprise software company into a crypto proxy, making substantial investments in the digital asset.
This latest note sale marks the company’s fourth offering in 2023. The 0.625% convertible securities issued will mature in 2028, while part of the funds raised are being used to redeem $500 million worth of older notes, which had a higher interest rate of 6.125%.
Also Read: MicroStrategy Announces $700M Debt Offering to Purchase More Bitcoin
Growing Bitcoin Holdings
As of September 19, MicroStrategy held approximately 252,220 Bitcoin, according to a filing with the Securities and Exchange Commission. This aggressive Bitcoin acquisition strategy has proven beneficial for the company, with its stock more than doubling in value this year. The company’s stock performance has outpaced Bitcoin’s price increase, which rose by roughly 50% during the same period.
