MicroStrategy plans to raise another $500 million in debt financing to buy more “headline assets”

Saylor recently referred to BTC as a “headline asset” and said that “whoever has the most bitcoin wins”.

According to a March 13 press release, MicroStrategy is looking to raise an additional $500 million through a bond offering to continue growing its bitcoin reserves, less than a week after the company completed a similar debt sale.Bitcoin Miner

The latest senior convertible notes have a maturity date of March 15, 2031, and offer investors semi-annual interest payments. The offering will include an option to issue an additional $75 million of notes, depending on market conditions and demand.

Effective September 15, 2028, the notes are convertible into shares of MicroStrategy Class A common stock or cash.

Headline Assets

MicroStrategy recently closed a $700 million bond financing and used the proceeds to purchase 12,000 bitcoins for $821 million over the weekend. The initial offering was for $600 million, but was later financed to meet investor demand.

The purchase brings its total bitcoin reserves to 205,000 BTC, worth nearly $15 billion at press time.

As Michael Saylor, MicroStrategy’s founder and executive chairman, said, his company continues to buy bitcoin and will remain “poor” regardless of the price.

In a recent interview with Yahoo Finance, Saylor called Bitcoin a “headline asset” and said that those who value fiat currencies will remain “poor”.

He added that people who accumulate wealth tend to put their money into hard assets like real estate and gold. However, both are dwarfed by Bitcoin as a long-term store of value.

In response to an inquiry about whether he would sell bitcoin at some point, Saylor also reiterated his position that bitcoin is an exit plan. He said it would be foolish to trade Bitcoin for something worse, stating:Whatsminer Miner

“Whoever has the most bitcoins wins.”

Store of value

Saylor believes that Bitcoin is a more viable long-term store of value than high-value businesses, commercial real estate and gold.

He also says that as more people begin to adopt Bitcoin, its total market value (market capitalization) will grow significantly over the next decade. Currently, Bitcoin’s market capitalization is about $1 trillion, but Saylor predicts that number could grow to 10 or even 100 times that amount.

To put this in mathematical terms, if Bitcoin’s market capitalization reaches $20 trillion, this means that a single Bitcoin would be worth under $1 million.

Saylor added that Bitcoin is expected to surpass gold in terms of market capitalization because it is a far superior quality asset and represents a digital transformation of capital.

At press time, MicroStrategy stock (MSTR) was trading at $1,766, up 10.85% on the day and down 0.18% after hours.