MicroStrategy, the business intelligence and Bitcoin investment firm led by Michael Saylor, is set to raise $2 billion through the issuance of 0% senior convertible notes. The funds will be used to further increase the company’s Bitcoin holdings and support its operational capital.
As outlined in a statement released on February 18, initial note buyers will have the option to acquire an additional $300 million worth of notes five days after the initial issuance. The convertible notes, which carry no interest, grant investors the option to convert the debt into equity in the future, prioritizing them over common stockholders in case of liquidation or bankruptcy.
This move is part of MicroStrategy’s broader “21/21 Plan,” which aims to accumulate $42 billion in capital over the next three years for Bitcoin purchases. Since announcing the plan on October 30, the company has added 200,000 Bitcoins to its holdings, bringing its total to 478,740—making MicroStrategy the largest corporate Bitcoin holder in the world.
The proposed notes are set to mature on March 1, 2030, though the company has the option to repurchase or redeem them earlier depending on market conditions. Following the announcement, MicroStrategy’s stock price saw a slight decline of 1%, though the company’s shares have surged 372% over the past year.
Despite the company’s ambitious Bitcoin acquisition strategy, its most recent financial report for Q4 revealed a significant net loss of $670.8 million, highlighting the ongoing volatility of the cryptocurrency market.
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