The company plans to issue a convertible bond worth $700 million. Cryptocurrency investors understand its implications well. MicroStrategy has utilized a significant portion of the cash generated from each debt issuance to purchase Bitcoin (BTC) $119,971. Having acquired billions of dollars in BTC, the company aims to acquire even more.
MicroStrategy May Buy More Bitcoin
The company generates cash through bond issuance and pays interest to buyers. Millions of dollars in cash are allocated for the company’s liquidity needs and Bitcoin purchases. The recent announcement pertained to a new $700 million bond issuance. Starting March 15, 2025, the company will make payments to bondholders every six months, concluding in 2028.
Payments will be made every March 15 and September 15.
“MicroStrategy will use the net proceeds from this offering to repay the entire outstanding principal amount of $500.0 million of MicroStrategy’s 6.125% Senior Secured Notes due 2028 and to purchase Bitcoin with a portion of the net proceeds.”
This information was included in the company’s announcement details. Therefore, part of the remaining $200 million may be used for purchases in the upcoming weeks.