MicroStrategy, under the leadership of Michael Saylor, is once again making bold moves in the world of cryptocurrency. The company has revealed its intention to raise funds by issuing convertible senior notes worth $500 million. This decision is part of MicroStrategy’s strategy to increase its Bitcoin holdings and expand its presence in the crypto market.
This isn’t the first time MicroStrategy has used this approach to bolster its Bitcoin reserves. The company has previously issued senior notes to acquire more of the popular digital currency. Now, they are launching a private issuance of convertible senior notes targeted at institutional investors. These notes, set to mature in 2032, are unsecured and have a face value of $500 million.
MicroStrategy plans to use the funds raised from these notes primarily to purchase additional Bitcoin. Despite being unsecured, the notes carry a senior status and will accrue interest semi-annually, with the first payment due in December 2024. The company also has the option to redeem the notes before their maturity in June 2032, as long as the total principal balance is above $75 million by June 2029.
Investors who hold these notes will have the flexibility to convert them into cash, MicroStrategy’s class A common stock, or a combination of both. However, conversions will only be allowed starting December 2031, just before the notes reach maturity.
In other crypto news, Taiwan has announced the establishment of a new Crypto Association amidst regulatory developments in the industry. This move signals Taiwan’s growing interest and involvement in the world of digital assets and blockchain technology.
