MicroStrategy, the largest holder of Bitcoin (BTC), is planning to raise $600 million to buy more Bitcoin. The business information company confirmed this news on March 4th, revealing that the funds will be raised through the issuance of high-yield convertible bonds.
These high-yield convertible bonds are debt securities that can be converted into equity in the future. Being labeled as “high-yield” for common stockholders means they have priority in case of bankruptcy or liquidation.
MicroStrategy intends to use the proceeds from the bond sale to buy more Bitcoin for general corporate purposes. The bonds will mature on March 15, 2030, unless redeemed or converted earlier according to their terms.
These bonds can be converted into cash, MicroStrategy’s Class A common stock, or a combination of cash and MicroStrategy’s Class A common stock.
This announcement comes as MicroStrategy’s stock rose over 2% to $1,359 on March 4th. Meanwhile, Bitcoin surged 6.9% to $67,799 in the past 24 hours and is rapidly approaching its all-time high of $69,000, achieved on November 10, 2021, according to CoinGecko.