Bitcoin continued to soar this week, breaking through the $68,000 mark this morning. MicroStrategy, the publicly listed company with the most Bitcoin holdings, saw its stock price skyrocket by nearly 23.6% on Monday, reaching $1,334, the highest closing price in 24 years. In addition, the company announced today that it will issue $600 million in corporate bonds to buy more Bitcoin.
As the price of Bitcoin surged, MicroStrategy, as the global leader in Bitcoin holdings, made another purchase in February, acquiring an additional 3,000 BTC. The company now holds a total of 193,000 BTC, worth over $13.211 billion. This means that the company’s Bitcoin holdings have gained approximately $7.121 billion, with an increase of more than $2.3 billion in less than eight days since announcing its latest purchase.
However, MicroStrategy is not satisfied with its current Bitcoin holdings. Michael Saylor, the CEO and founder of MicroStrategy, announced today that the company plans to issue $600 million worth of convertible senior notes through private placement to qualified institutional investors. The proceeds will be used for “purchasing Bitcoin” and other general corporate purposes. MicroStrategy also plans to grant the initial purchasers of the notes an option to purchase up to an additional $90 million aggregate principal amount within 13 days from the date of issuance. The company stated that the completion of this issuance is subject to market and other conditions and cannot be guaranteed.
Convertible senior notes represent bonds that investors purchase and receive interest income until the specified period, after which they can be converted into shares, cash, or a combination of both, according to the terms of the bond. The term “senior” indicates that, in the event of company liquidation, the investors holding these notes have a higher priority for repayment compared to general bonds.