Technology company MicroStrategy has announced its third bond offering of 2024, aiming to raise $700 million through the issuance of convertible senior notes due in 2028. The proceeds will be used to repay $500 million of its existing secured senior notes and purchase additional Bitcoin, with any remaining funds going to general corporate purposes. The Capital allows the company to replace existing debt with new debt on more favorable terms.
The notes will be unsecured and will begin paying interest in March 2025, and the offering is open to qualified institutional investors only. This is MicroStrategy’s third bond offering in 2024, following two previous offerings in March and June that raised $700 million and $500 million, respectively, through convertible senior notes due in 2032.
The strategy of raising debt to buy Bitcoin is part of the plan of MicroStrategy, which currently holds 244,800 BTC , equivalent to about $14 billion as of September 13. However, the volatility of Bitcoin prices has affected the company's finances, resulting in a net loss of $102.6 million in the second quarter of 2024, a sharp decrease from a profit of $22.2 million in the same period last year. Despite this, the company's stock has seen an impressive rise, with a nearly 295% increase in the past 12 months, reaching $134 as of September 16, and a 96% increase in 2024.
Join Telegram: https://t.me/tapchibitcoinvn
Follow Twitter (X): https://twitter.com/tapchibtc_io
Follow Tiktok: https://www.tiktok.com/@tapchibitcoin
Annie
According to Cointelegraph
