Not enough with 40,000 Bitcoins? MicroStrategy issues $400 million in bonds, profits to be reinvested in Bitcoin

Not content with just using its own cash reserves to buy Bitcoin, the Nasdaq-listed company MicroStrategy announced that it will issue a total of $400 million in convertible senior notes due in 2025 to eligible institutional buyers.

Convertible Senior Notes

Convertible Senior Notes are a type of debt security, also known as convertible bonds, which allow holders to convert them into the issuing company's (MicroStrategy) stock, cash, or a combination of both according to certain rules. It is a quick way to raise funds from investors, equivalent to MicroStrategy's unsecured debt.

According to their press release, the notes will mature in December 2025. Starting from 2021, MicroStrategy will pay interest to holders on June 15th and December 15th each year. Since March this year, MicroStrategy's stock price has increased by nearly 270%.

Selling Bonds, Going Crazy on Bitcoin Purchases

Despite already holding more bitcoin on their books than any other publicly traded company, MicroStrategy seems unsatisfied. After the bond issuance, according to the company's cash reserve policy, all proceeds from selling the bonds will be invested in bitcoin unless there is an operational need for the funds.

According to reports on the 5th of this month,, MicroStrategy CEO Michael Saylor tweeted in the morning displaying SEC filing documents, indicating that MicroStrategy bought 2,574 bitcoins for $50 million in cash, bringing their total bitcoin holdings to 40,824.

According to Bitcoin Treasuries tracking data, MicroStrategy's bitcoin holdings far exceed those of other publicly traded companies, accounting for approximately 0.19% of the circulating bitcoin supply. What's more, MicroStrategy itself has no relevance to the crypto space. The second-ranked is the crypto investment firm Galaxy Digital.