(Bloomberg) — MicroStrategy Inc., the largest corporate holder of Bitcoin, proposed increasing its cache of the largest cryptocurrency through the sale of $600 million in convertible senior notes.
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The value of Bitcoin holdings on the enterprise software maker’s balance sheet has increased to around $13 billion since the company started purchasing the digital asset in 2020 as part of the effort to hedge inflation. Michael Saylor, MicroStrategy’s co-founder, has become one of the most prominent advocates for the cryptocurrency by turning the software maker into a Bitcoin proxy for stock investors.
The proposed private offer comes as Bitcoin approaches its all-time high of nearly $69,000 reached in late 2021. The Tysons Corner, Virginia-based company held around 193,000 Bitcoin as of Feb. 25.
New demand from spot Bitcoin exchange-traded funds along with elevated trading in the crypto derivatives market have been driving the latest rally. Another big purchase by MicroStrategy could further fuel the momentum.
The offering of the convertible senior notes due 2030 will be to qualified institutional buyers, according to its statement on Monday.
It also “expects to grant to the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $90 million aggregate principal amount of the notes,” the company said.
Shares of MicroStrategy jumped 24% to $1,334 on Monday. The stock has more than doubled this year, outpacing the roughly 60% increase in Bitcoin during the same period.
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