Micro strategy plans to sell 700 million magnesium convertible bonds! Repurchase company debt and increase holdings in Bitcoin

According to an official press release, US listed company MicroStrategy plans to sell convertible senior notes worth up to $700 million to raise funds to purchase more Bitcoin and repurchase corporate debt. This is the company's third issuance of corporate bonds in 2024.

According to the press release, this private issuance will be subject to market conditions and the notes will mature in 2028. These notes are Senior Unsecured Bonds of Micro Strategy and will pay interest twice a year.

As of June 2024, the total debt of Micro Strategy has reached $3.9 billion. According to documents from the US Securities and Exchange Commission, the company has purchased 244800 bitcoins worth nearly $10 billion, including 18300 bitcoins purchased last week.

The company stated in a press release that:

Micro Strategy plans to use the net proceeds from this issuance to redeem all $500 million, 6.125% guaranteed senior bonds due in 2028, and will use the remaining net proceeds to purchase more Bitcoin and for general corporate purposes

Since starting to purchase Bitcoin in 2020, the company has purchased a total of $9.5 billion worth of Bitcoin, with an average cost of $38585 per coin.