MicroStrategy plans to sell $500 million in debt, following its own and Coinbase's footsteps
Quick Take
- Microstrategy is selling up to nearly $600 million in convertible senior notes, which mature in 2030, the company said Wednesday in a statement.
- The company completed a sale of $800 million worth of notes just days ago.
Following its $800 million debt raise last week, Microstrategy is planning to sell an additional $500 million of its debt to snap up more bitcoin, as the red-hot cryptocurrency market pushed the token’s price past $70,000.
The debt is purchasable in the form of senior notes, which will mature on March 15, 2031. The company said Wednesday in a statement that investors will receive interest-payable arrears, or payouts, twice a year. According to MicroStrategy, buyers can convert part or all of the notes into cash.
The sale follows the company’s recent bitcoin buying spree. The bitcoin-based business purchased more than $800 million worth of the cryptocurrency earlier this week, CNBC reported Wednesday, citing its recent interview with MicroStrategy CEO Michael Saylor. It did so by issuing roughly that amount in senior debt.
Bitcoin 
BTC
+0.11%
rose 2.6% on Wednesday, topping $73,000, The Block’s price data shows.
RELATED INDICES
Shares of MicroStrategy were trading at $1,766 as of the time of writing, up more than 10% in the past 24 hours. The company’s stock has rallied more than 170% in the past year.
MicroStrategy isn’t the only crypto company attempting to borrow money for its business amid a strong digital assets market. Coinbase announced on Tuesday that it would sell $1 billion worth of senior notes to institutional buyers.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
