- MicroStrategy priced another debt offering of $525 million convertible bonds to buy more bitcoin, adding to its existing holdings of 129,699 bitcoin.
- With this latest debt raise, MicroStrategy will likely acquire thousands more bitcoin, continuing its strategy of taking on debt to convert cash into cryptocurrency.
- Despite bitcoin’s volatility, MicroStrategy remains confident in its long-term potential as a store of value and inflation hedge, and its bitcoin acquisition strategy has inspired other companies to also buy bitcoin.
MicroStrategy, led by CEO Michael Saylor, has priced another debt offering to purchase more bitcoin. This capital raise comes just days after a similar $800 million debt offering.
Details of the Deal
The company priced an upsized $525 million convertible bond, due in 2027. The proceeds will go towards buying more bitcoin to add to MicroStrategy’s existing stash of 129,699 bitcoin.
MicroStrategy’s Bitcoin Holdings
With this latest debt offering, MicroStrategy will likely purchase thousands more bitcoin. The company’s bitcoin acquisition strategy has been to take on debt and convert cash reserves into the cryptocurrency. MicroStrategy holds the most bitcoin of any publicly traded company.
The Future of Bitcoin
Despite price volatility, MicroStrategy remains bullish on bitcoin’s long-term potential as a store of value and inflation hedge. The company is set to hold its bitcoin indefinitely.
Other companies taking bitcoin on their balance sheets
MicroStrategy’s bitcoin strategy has inspired other companies like Tesla and Block to also buy bitcoin. More institutional adoption is likely to continue.
Concluding Thoughts
MicroStrategy’s latest debt deal highlights its confidence in bitcoin as a long-term investment. The company now has over $4 billion worth of bitcoin holdings and will add to its stack with this latest capital raise. Bitcoin remains highly volatile, but MicroStrategy is taking a long view.
