Following last week’s $800 million debt raise, Microstrategy plans to sell another $500 million in debt to raise more bitcoin as the red-hot cryptocurrency market pushes the price of the token above $70,000.
The debt can be purchased in the form of senior bonds that mature on March 15, 2031. Investors will receive overdue interest payments twice a year, the company said in a statement Wednesday.. Buyers can convert some or all of the notes into cash, according to MicroStrategy.
The sale follows the company’s recent Bitcoin purchases. Bitcoin-based companies purchased more than $800 million of the cryptocurrency earlier this week, CNBC reported Wednesday. interview It did so by issuing roughly that amount of senior notes with MicroStrategy CEO Michael Saylor.
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MicroStrategy’s stock price is trading at $1,766 as of this writing, up more than 10% in the last 24 hours. The company’s stock price has risen more than 170% over the past year.
MicroStrategy is not the only cryptocurrency company looking to borrow money for its business amid the robust digital asset market. Coinbase announced Tuesday that it will sell $1 billion worth of senior notes to institutional buyers.
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About the author
Elizabeth Napolitano is a data reporter covering business and technology news with a focus on cryptocurrency. Before she joined The Block, Elizabeth reported on BigTech, AI, cryptocurrency, and video games for CBS Moneywatch. As a CoinDesk reporter, she covered DeFi, NFTs, and US courts. She received a master’s degree in journalism from CUNY. X: Follow her at @LizKNapolitano.