MicroStrategy Expands BTC Holdings, Bhutan Bitcoin Revealed

Virginia-based software company MicroStrategy has announced a $700 million convertible bond offering to raise its Bitcoin holdings and pay down debt.

The offering, targeted at eligible institutional buyers, will mature in 2028. The firm expects to raise more capital to pay off $500 million in existing debt by acquiring more bitcoins.

From Boardrooms to Governments: Bitcoin Adoption Grows Globally

The notes bear interest payable semi-annually and are convertible into cash, MicroStrategy shares or both. Additionally, MicroStrategy is going to use the remaining funds to acquire more bitcoins, cementing its position as a giant corporation in the crypto space.

“The notes will be unsecured, senior obligations of MicroStrategy, and will pay interest semi-annually in arrears on March 15 and September 15 of each year beginning on March 15, 2025. The notes will mature on September 15, 2028, unless earlier purchased, redeemed or converted in accordance with their terms.” ” reads the official announcement.

Read more: Who will have the most Bitcoins in 2024?

This latest bond issuance shows MicroStrategy's confidence in raising Bitcoin holdings while managing its ongoing debt obligations. As of 2020, MicroStrategy has raised billions in similar note offerings.

In the year In 2024, the company completed several notable offerings. These include $603.75 million in convertible notes in March and $800 million in June.

At the time of writing, Microstrategy holds 244,800 BTC worth about $14 billion. This figure is approximately 1.17% of Bitcoin's total supply of 21 million.

With the same development, Bhutan has emerged as a major player in the Bitcoin market. The kingdom's bitcoin holdings are managed through the state-owned Druk Holdings and Investments (DHI). According to blockchain intelligence firm Arkham, Bhutan held approximately 13,029 BTC as of September 16.

Unlike other countries where Bitcoin is bought through legal seizures, Bhutan's Bitcoin comes from its own mining operations. Bhutan is quietly mining Bitcoin in partnership with Nasdaq-listed crypto mining company Bitdeer Technologies. This collaboration aims to increase Bhutan's Bitcoin mining capacity by six times by introducing new hardware.

The country's government-backed mining efforts are looking to diversify its revenue streams, especially in light of Bitcoin's upcoming halving, which is expected to reduce mining rewards by 50%.

Interestingly, Bhutan's holdings are larger than those of Bitcoin proponent El Salvador, which holds around 5,800 BTC. On the other hand, the United States remains the largest government holder of Bitcoin with approximately 213,246 BTC. Meanwhile, China followed with 190,000 BTC.

Read more: How to buy Bitcoin (BTC) and everything you need to know

These two developments—microstrategy's continued BTC hoarding and Bhutan's move to bitcoin mining—show the growing trend of corporations and governments realizing bitcoin's long-term potential. As Bitcoin's impact on global finance expands, more institutions and countries may integrate the cryptocurrency into their financial strategies.