American software company MicroStrategy, one of the largest public holders of bitcoins in the world, announced its intention to raise $700 million to purchase the first cryptocurrency and pay off its own debt, which has reached almost half a billion dollars.
MicroStrategy said the funds will be raised through a bond offering due in 2028. The offering will be available only to qualified institutional investors. Payments on the bonds are expected to begin in March 2025, with full repayment occurring within three years, the statement said.
“The majority of the capital raised will be used to repay MicroStrategy’s previously issued bonds, which have a rate of 6.125%. The remaining funds after the bonds are repaid will be used to purchase bitcoin and for corporate expenses,” the company announced.
MicroStrategy emphasized that this is the third bond placement in 2024, and after paying off the debt, the firm will be able to unlock at least 69,080 BTC .
MicroStrategy previously notified the US Securities and Exchange Commission (SEC) about the purchase of an additional 18,300 bitcoins, increasing its holdings of the first cryptocurrency to 244,800 coins.
