Key Points
- MicroStrategy intends to sell an additional $500 million in debt to acquire more Bitcoin.
- The company's move follows a similar strategy by Coinbase, which recently announced the sale of $1 billion worth of senior notes.
MicroStrategy is set to follow up on its recent $800 million debt raise with an additional sale of $500 million.
The proceeds from this sale are earmarked for further investment in Bitcoin. This move comes as the cryptocurrency's value continues to surge, recently surpassing the $70,000 mark.
Debt Sale Details
The debt will be available for purchase as senior notes, maturing on March 15, 2031.
MicroStrategy announced that investors would receive interest-payable arrears or payouts twice a year.
Furthermore, note holders have the option to convert part or all of their notes into cash.
Recent Bitcoin Investments
The planned debt sale follows MicroStrategy's recent acquisition of over $800 million worth of Bitcoin.
The company financed this purchase by issuing an equivalent amount in senior debt.
MicroStrategy's shares were trading at $1,766 at the time of reporting, marking a 10% increase in the past 24 hours and a 170% increase over the past year.
MicroStrategy isn't the only crypto-focused company leveraging debt to expand its business.
Coinbase recently announced its own plan to sell $1 billion in senior notes to institutional investors.
This strategy appears to be a growing trend among companies operating in the robust digital asset market.
