MicroStrategy proposes $500 million convertible bond issue to purchase additional Bitcoin

MicroStrategy (MSTR) on Thursday announced its intention to issue convertible bonds totaling $500 million due in 2032. The company can increase the money it will obtain from these bonds. Bitcoin(BTC) and plans to use it for other business-related expenses.

The bond offering will depend on the condition of the financial market and there is no guarantee as to when it will occur or the specific details of the offering.

“MicroStrategy also plans to give the primary buyers of these bonds an additional purchase option of up to $75 million from these bonds. This option can be exercised within a period of 13 days from the issuance date of the bonds,” it was stated.

Starting on June 20, 2029, MicroStrategy may elect to repurchase some or all of these bonds for cash, but only if reasonable criteria are met. This private security offering will be open only to reasonable purchasers who are qualified institutional investors pursuant to Rule 144A of the Securities Act of 1933.

MicroStrategy currently holds 214,400 BTC with a market cap of over $14 billion. This makes it the public company with the largest Bitcoin holdings.

MSTR’s share price fell by 1.5% in the pre-opening hours of the stock market.

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