MicroStrategy plans to buy additional Bitcoin following $700 million convertible notes sale

• MicroStrategy plans to issue $700 million convertible senior notes to institutional investors.
• Proceeds from the notes will be used to buy back debts and additional Bitcoin tokens.
• Bitcoin is down over 2% in the past 24 hours.

MicroStrategy (MSTR) plans to increase its Bitcoin (BTC) holdings after announcing a $700 million convertible senior notes offering on Monday. The announcement follows its $1.11 billion Bitcoin purchase a few days ago.

MicroStrategy to step up Bitcoin accumulation pace

Business intelligence firm MicroStrategy announced that it plans to buy back debts and purchase additional Bitcoin following its $700 million private offering of convertible senior notes — subject to market conditions — to institutional investors.

The notes will be unsecured, senior obligations of MicroStrategy, and bear interest payable semi-annually in arrears. The company also noted that the proceeds from the offering will be channeled toward buying back its debts and additional Bitcoin.

"MicroStrategy intends to use the net proceeds from this offering to redeem all $500.0 million outstanding aggregate principal amount of MicroStrategy's 6.125% Senior Secured Notes due 2028 (the "Senior Secured Notes") and to use any balance of the net proceeds to acquire additional bitcoin and for general corporate purposes," the company stated in its press release.

The company's latest move follows its $1.11 billion purchase of 18,300 BTC using funds raised from selling its shares. The purchase took its total Bitcoin holdings to 244,800 BTC — over 1% of the total Bitcoin supply — with a 17% year-to-date gain, as confirmed by CEO Michael Saylor on Friday.

MicroStrategy began its aggressive Bitcoin acquisition strategy in August 2020 following a restructuring of its corporate treasury strategy to make the top cryptocurrency one of its core assets. Since then, Michael Saylor has become one of the most influential figures in the Bitcoin community.

Bitcoin is struggling below $58K, down over 2% in the past 24 hours.