MicroStrategy, the largest public holder of Bitcoin (BTC), is planning to expand its portfolio once again.
On September 16, the firm revealed it would raise $700 million by issuing convertible senior notes through a private offering.
The company stated that most of the funds, around $523.8 million, will be used to pay off existing debt. This debt includes $500 million in senior secured notes that are due in 2028, plus interest. After settling this, any leftover funds will be directed toward buying more Bitcoin and for general corporate needs.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
Where to Trade Crypto: 3 Best Approaches Explained (Animated)
Convertible senior notes are a type of debt that allows investors to convert the notes into company stock. MicroStrategy has repeatedly issued this kind of debt to buy Bitcoin—in June, the company raised $800 million through convertible notes to increase its BTC holdings.
As of September 17, the firm owns 244,800 Bitcoins, with a total value of approximately $14.2 billion.
Michael Saylor, the company's founder and chairman, remains a strong advocate of the Bitcoin strategy. He believes that holding Bitcoin is the best way for MicroStrategy to protect its wealth and benefit its shareholders.
This strategy has proven successful so far, with MicroStrategy's Bitcoin holdings now worth 50% more than what the company originally paid on average.
Currently, Bitcoin is priced at $58,506 per coin, representing a 20% decrease from its all-time high of $73,844 reached in March.
Thus, MicroStrategy's plan to raise $700 million is another step in its commitment to increase its Bitcoin reserves, a strategy that has paid off for the company and its shareholders.
In other news, El Salvador's President, Nayib Bukele, shared that the country's adoption of BTC as legal tender has not lived up to his initial hopes.
