MicroStrategy has announced plans to offer $700 million in convertible senior notes due 2028. This private offering will be available to qualified institutional buyers under Rule 144A of the Securities Act.

The proceeds will be primarily used to redeem $500 million in existing Senior Secured Notes, which carry a 6.125% interest rate, maturing in 2028. Any remaining funds are expected to go toward acquiring more Bitcoin and general corporate purposes.

In addition to the $700 million offering, MicroStrategy has granted an option to initial purchasers to buy an additional $105 million in notes within 13 days of issuance. This move is subject to market conditions and may not be completed as anticipated.

When the Senior Secured Notes are redeemed, the collateral, which includes 69,080 bitcoins, will be released, representing a significant step in MicroStrategy’s financial strategy.

MicroStrategy has solidified its reputation as the largest corporate holder of Bitcoin, currently holding approximately 244,800 BTC, valued at over $14 billion at current prices.

The company first adopted Bitcoin as its primary treasury reserve in 2020 and has consistently increased its holdings since then. Executive Chairman Michael Saylor continues to steer the company’s aggressive Bitcoin strategy, leveraging both equity and debt to amass cryptocurrency​.

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