Virginia-based software company MicroStrategy has announced a $700 million convertible bond offering to enhance its Bitcoin reserves and reduce its debt load.
Targeted at qualified institutional buyers, the notes will mature in 2028. The company anticipates raising substantial funds to redeem $500 million of existing debt while acquiring additional Bitcoin.
The notes will bear interest, payable semi-annually, and are convertible into cash, MicroStrategy shares, or a combination of both. The company plans to use the remaining proceeds to further increase its Bitcoin holdings, solidifying its role as a major player in the crypto market.
As stated in the official release, “The notes will be unsecured, senior obligations of MicroStrategy, and will bear interest payable semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2025. The notes will mature on September 15, 2028, unless earlier repurchased, redeemed, or converted in accordance with their terms.”
MicroStrategy’s strategy of leveraging debt to grow its Bitcoin portfolio while managing its financial obligations continues with this latest bond issuance. Since 2020, the firm has raised billions through similar offerings. In 2024 alone, the company completed two significant issuances: $603.75 million in convertible notes in March and $800 million in June.
As of the time of writing, MicroStrategy holds 244,800 BTC, valued at approximately $14 billion, which represents roughly 1.17% of Bitcoin’s total supply of 21 million.
In related news, Bhutan has emerged as a key player in the Bitcoin space, with its holdings managed through the state-owned Druk Holding & Investments (DHI). According to blockchain data firm Arkham, Bhutan currently holds around 13,029 BTC as of September 16.
Unlike nations that have acquired Bitcoin through seizures, Bhutan has built its reserves through Bitcoin mining, in partnership with Bitdeer Technologies, a Nasdaq-listed mining firm. This initiative aims to increase Bhutan’s mining capacity sixfold with new hardware, diversifying its revenue streams as the Bitcoin halving event approaches, which will cut mining rewards by half.
Bhutan’s holdings surpass El Salvador’s, a country with a highly publicized Bitcoin strategy that holds about 5,800 BTC. In comparison, the U.S. government holds around 213,246 BTC, making it the largest governmental Bitcoin holder, followed by China with 190,000 BTC.
These developments—MicroStrategy’s ongoing BTC accumulation and Bhutan’s mining initiatives—highlight a rising trend of both corporate and governmental interest in Bitcoin’s long-term potential. As Bitcoin’s role in global finance grows, more institutions and nations may incorporate it into their financial strategies.
