MicroStrategy plans to sell $700 million in convertible preferred notes to purchase more Bitcoin and repurchase debt

MicroStrategy CEO Michael Saylor announced that the company plans to sell up to $700 million in senior convertible notes to fund the purchase of additional Bitcoins and repurchase debt. The private placement will be "subject to market conditions," with the notes maturing in 2028, representing unsecured priority debt, paying interest twice a year. As of June 2024, MicroStrategy's total debt has reached $3.9 billion. According to a document from the U.S Securities and Exchange Commission (SEC), since 2020, MicroStrategy has purchased 244,800 Bitcoins worth nearly $10 billion at an average holding cost of $38,585 each including last week's purchase of 18,300 Bitcoins valued over one billion dollars.