Bitcoin
$49,082.32 5.64%
BTC · 1w

MicroStrategy Sells Off $1.05B Worth of Debt to Buy More Bitcoin

MicroStrategy, the tech company known for its significant Bitcoin stores, has completed its offering of $1.05 billion in convertible senior notes—a windfall the company intends to invest in even more Bitcoin.

A convertible senior note is a kind of debt security that can be either converted into shares or bought back by the issuer; these are set to mature in 2027, but MicroStrategy can buy them back in 2024.

Sales like these can be a good way for a company to raise cash, if it can handle the interest payments to investors.

The company announced the debt sell-off earlier this week, and said it “intends to use the net proceeds from the sale of the notes to acquire additional Bitcoin,” though the exact amount isn’t specified.

MicroStrategy has pulled off this maneuver before: it sold $400 million in convertible senior notes in December and then promptly bought $10 million worth of Bitcoin in January.

CEO Michael Saylor remains an unabashed crypto evangelist and continues to beat the drum for Bitcoin on the institutional level—the company is currently sitting on over 70,000 Bitcoins, which is about $3.7 billion.

It’s worked out for MicroStrategy so far (share prices are way up since its first investment in August of last year), but not everyone is happy: analysts at Citi recently downgraded the company’s stock, citing overreliance on Bitcoin.

Editor's note: This story was updated after publication to provide additional context and clarity.

Go to decrypt.co
Recent news
BTC +5.64% · efrontier.substack.com · 10h

"It’s become evident to just about everyone, that cash in the bank is nothing more than Bitcoin that is not going up. It's virtual money; frankly it isn’t even an asset. It's a liability of the bank; therefore it’s a liability,” - Anthony Deden, Swiss based Chairman of Edelweiss Holding

Efficient Frontier's biweekly newsletter no. #26. In this edition: Crypto markets and news roundup. 'Fiat wars' update with some radical and surprising quotes.
BTC +5.64% · uk.finance.yahoo.com · 18h

Price going to Mars confirmed.

British asset manager Ruffer predicted the long-term adoption of bitcoin by traditional financial institutions. Separately, Citigroup said the cryptocurrency could be at the tipping point of usage.
89
BTC +5.64% · twitter.com · 18h

Mayor FrancisSuarez, who wants Miami to embrace BTC, pushes back on Yellen calling it “extremely inefficient”: “It doesn't surprise me at all that a Treasury secretary would find a decentralized potential currency to be hostile to a currency that they control.”

Mayor @FrancisSuarez, who wants Miami to embrace bitcoin, pushes back on Yellen calling it “extremely inefficient”:“It doesn't surprise me at all that a Treasury secretary would find a decentralized p...
69