- MicroStrategy will issue $500 million in bonds maturing in 2031.
- This is the second issue in March 2024.
- The company plans to spend the money on bitcoin investments.
- The firm’s unrealized profits have reached $8.1 billion.
MicroStrategy announced the issuance of senior convertible bonds in the amount of $500 million. This is the second issue recently.
Recall, here we are talking about debt securities, the holders of which will receive a certain advantage in case of liquidation of the company.
According to the official press release, the maturity date of the bonds is March 15, 2031. Interest on them will be paid every six months starting from September 15, 2024. The first redemption date is March 22, 2028.
Notably, the company noted that it reserves the right to choose the form of repayment of the bonds. It could be fiat or MicroStrategy shares.
“We intend to use the net proceeds from the bond sale to purchase additional bitcoins as well as for general corporate purposes,” the release said.
This is the company’s second recent issuance. In early March 2024, MicroStrategy announced a $600 million bond issue maturing in 2030.
Following this, the firm purchased 12,000 BTC worth $821 million. As of March 14, 2024, the company controls 205,000 BTC with an average purchase price of $33,706.
On March 13, 2024, bitcoin hit an all-time high at $73,650. At the time of writing, the asset is trading at $73,480, according to TradingView. MicroStrategy then has an unrealized profit of $8.1 billion.
Notably, MicroStrategy’s example was followed by the Coinbase exchange. The company announced a $1 billion bond issue.
