MicroStrategy has announced its intention to sell US$500 million in convertible bonds, specifically to finance the purchase of more Bitcoin.
The firm, which currently possesses 214,400 BTC valued at roughly US$14.52 billion, holds over 1% of Bitcoin’s total circulating supply.
The bonds, set to mature in 2032, are targeted at qualified institutional buyers, featuring an option to increase the sale by US$75 million within the first 13 days.
The move to sell bonds for Bitcoin investment highlights MicroStrategy’s strategic emphasis on the digital currency as a key asset, with its holdings already exceeding those of any other corporate entity.
The notes will accrue interest semiannually and can be converted into MicroStrategy stock or cash under specific conditions.
This initiative is part of a broader trend of MicroStrategy’s blockchain endeavors, including leveraging Bitcoin’s blockchain for enhancing digital identity security.
In the wider business landscape, MicroStrategy’s investment moves are indicative of an emerging trend where companies are increasingly incorporating cryptocurrency into their treasury strategies.
Michael Saylor, the company’s founder and chairman, has been a vocal advocate for Bitcoin.