MicroStrategy to Issue Additional $500 Million Convertible Bonds "Buying Bitcoin"

Holding Bitcoin Worth 18.5 Trillion KRW
Company Stock Price Soars Alongside Bitcoin

Recently, as the price of the cryptocurrency Bitcoin reached an all-time high and continued its upward rally, the U.S. software company MicroStrategy announced that it would increase its Bitcoin accumulation by issuing additional convertible bonds.

According to a report by Bloomberg on the 13th (local time), MicroStrategy, known for its Bitcoin investments, announced in a press release that it would issue $500 million (approximately 660 billion KRW) worth of unsecured senior convertible bonds maturing in 2031. The company had previously purchased Bitcoin with $821 million (approximately 1.1 trillion KRW) raised from convertible bonds maturing in 2030, which closed on the 8th.

[Image source=Yonhap News]

MicroStrategy plans to offer initial purchasers of the newly issued convertible bonds an opportunity to buy up to an additional $75 million (approximately 100 billion KRW). However, the issuance plan may change, and the raised funds could be used for general corporate purposes, the company added.

Michael Saylor, the company's co-founder and chairman, has been buying Bitcoin since 2020 as a hedge against inflation and an alternative to holding cash. In the first quarter of this year alone, he invested over $1 billion (approximately 1.3 trillion KRW) in Bitcoin, which exceeds half of the total amount purchased last year. The total value of Bitcoin currently held by MicroStrategy amounts to $14 billion (approximately 18.5 trillion KRW).

Additionally, Coinbase Global, the largest cryptocurrency exchange in the U.S., announced on the 12th that it plans to issue $1 billion worth of senior convertible bonds for repaying existing debt and general corporate purposes. Cryptocurrency-related companies are leveraging the Bitcoin price rally as momentum for their stock price increases. Since Chairman Saylor began purchasing, Bitcoin's price has risen more than 675%, and it has increased about 70% this year alone due to the launch of Bitcoin spot exchange-traded funds (ETFs). Supported by this, Coinbase and MicroStrategy stocks have surged 45% and 180%, respectively, so far this year.

This content was produced with the assistance of AI translation services.