Microstrategy announced another $500 million note sale to buy Bitcoin

MicroStrategy, the world's largest corporate owner of BTC, has announced that it will pay another $500 million in senior notes, with the proceeds being used to buy more bitcoins.

At current prices, the next purchase is expected to take the company's holdings to more than 210,000 coins — more than 1% of the entire Bitcoin supply.

The convertible notes are due in 2031, according to the company's announcement Wednesday. Interest rates and initial conversion rates have not yet been determined. “MicroStrategy intends to use the net proceeds from the sale of the Notes to acquire additional Bitcoins and for general corporate purposes,” the company wrote. Earlier this month, MicroStrategy completed the sale of $700 million of convertible notes due 2030, which carried a 0.625% coupon until then. A subsequent purchase bought the company 12,000 BTC at just under $69,000 per coin, bringing the total up to 205,000 BTC. In less than a week, Bitcoin is trading at $73,200 per coin. MicroStrategy's entire Bitcoin portfolio is now up an average of 116%, for an unearned $8 billion profit.

MicroStrategy announced a private offering of $500 million convertible senior notes $MSTR.

— Michael Saylor⚡️ (@saylor) March 13, 2024