As part of its strategy to invest in digital assets, MicroStrategy sold senior convertible bonds with an interest rate of 0.625% due in 2028.

These bonds are offered to institutional investors and are convertible into cash or MicroStrategy shares through conversion options.

It is stated that the company plans to use the funds obtained both for Bitcoin purchases and to pay its debts.

This financing move by MicroStrategy attracts attention as part of the ongoing aggressive Bitcoin investment strategy led by CEO Michael Saylor. To date, the company has strengthened its balance sheets with this digital asset by purchasing large amounts of Bitcoin.

With this new bond offering, MicroStrategy is expected to further expand its Bitcoin position. The company sees this strategy, which is considered risky for traditional investors, as a long-term store of value and therefore increases its investments in Bitcoin.

The bond offering closed on September 19, appealing largely to institutional investors in the process. Making MicroStrategy’s bonds attractive with an annual interest rate of 0.625% managed to attract the attention of institutional investors despite low interest rates.

The bonds will mature through 2028, but these bonds may be converted, called or repurchased sooner under certain conditions.

MicroStrategy initially set the conversion rate at 5.4589 shares of class A common stock for every $1,000 par value of the notes. This equates to approximately $183.19 per share and represents a 40% premium over the company’s stock price as of September 17. This allows bond holders to benefit from the increase in stock prices over a period of time and stands out as an attractive feature for investors.

MicroStrategy plans to use some of the funds for debt payments. In particular, the target is to repay $500 million of senior secured bonds. With this transaction, the 69,080 Bitcoins held by the company will no longer be collateral. This could help the company establish a more flexible financial structure by freeing up existing Bitcoin assets.

It is also stated that the company’s convertible bonds are unsecured and offer a low interest rate of 0.625% per annum. Interest payments will be made twice a year, on March 15 and September 15. The face value of these bonds will mature by 2027, but investors will have the right to convert, repay or call earlier.

This move reinforces MicroStrategy’s commitment to Bitcoin and its long-term investment strategy. The company has positioned itself as a Bitcoin investment leader by continuing to purchase Bitcoin even during periods when volatility in the cryptocurrency market is high.

This bond offering will allow MicroStrategy to continue its Bitcoin accumulation strategy and help them strengthen their financial structure by reducing their debt.

MicroStrategy’s interest in Bitcoin demonstrates the company’s goal of strengthening its financial future with digital assets. The convertible bond offering stands out as an important step that will allow the company to purchase more Bitcoin towards this goal.