MicroStrategy Plans to Raise $700M to Buy Additional Bitcoin

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MicroStrategy has recently announced that it will raise $700 million through a new debt offering of convertible senior notes, which are set to mature in 2028.

The company plans to use the proceeds to pay off $500 million of its current senior secured notes and invest in additional Bitcoin, with any remaining funds allocated towards general corporate purposes.

Refinancing is a common practice among companies, where they replace existing debt with new debt to take advantage of more favorable terms.

The new notes will be unsecured and will begin accruing interest in March 2025. The offering is exclusively available to qualified institutional buyers.

This marks MicroStrategy‘s third debt offering of the year 2024, after raising $700 million in March and another $500 million in June through similar convertible senior notes, which are set to mature in 2032.