MicroStrategy Seeks to Raise $500M for More Bitcoin Acquisition

MicroStrategy is keen on acquiring additional Bitcoin after offering convertible senior notes.

Michael saylor sitting in an armchair "Godfather" style with laser eyes in a room filled with red smoke.
Created by Gabor Kovacs from DailyCoin
  • MicroStrategy has announced plans to acquire additional Bitcoin.
  • The company will raise the funds for the acquisition in a private offering.
  • MicroStrategy and its subsidiaries already hold over 1% of the entire BTC supply.

Michael Saylor’s business intelligence firm MicroStrategy announced Thursday plans to raise hundreds of millions to fund additional Bitcoin purchases and other initiatives.

The announcement comes after the company acquired an additional 9,245 Bitcoins between March 11 and March 18 at an average price of approximately $67,382 per BTC. Following the purchase, MicroStrategy and its subsidiary held about 214,246 bitcoins, equivalent to over 1% of the entire BTC supply.

Plans to Acquire Additional Bitcoin

In a statement dated June 13, MicroStrategy said it intends to offer $500 million in convertible senior notes due in 2032.

Sponsored

The private offering will be made to persons “reasonably believed to be qualified institutional buyers” per Rule 144A of the Securities Act of 1933 and is subject to market and “other conditions,” the company said.

As part of the offering, MicroStrategy plans to grant initial purchasers an option to acquire up to an additional $75 million aggregate principal amount of the notes.

“The notes will be unsecured, senior obligations of MicroStrategy and will bear interest payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2024. The notes will mature on June 15, 2032, unless earlier repurchased, redeemed or converted in accordance with their terms,” the statement read.

Per the statement, MicroStrategy intends to use the net proceeds of the sale to bolster its Bitcoin treasury with an additional BTC acquisition and to fund “general corporate purposes.”

Sponsored

The move underscores MicroStrategy’s ongoing commitment to Bitcoin despite the crypto asset’s recent choppy price movements. BTC had lost nearly 2.5% in the last 24 hours to trade at $67,684 as of press time, CoinMarketCap data shows.

Read about Michael Saylor’s run-in with the law:
DC AG: MicroStrategy’s Saylor Evaded Taxes, Bragged About It

Stay updated on Trump’s recent meeting with Bitcoin miners:
Trump Rallies Bitcoin Mining Industry Support Ahead of Election

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.