Following its $800 million debt raise last week, Microstrategy is planning to sell an additional $500 million of its debt to snap up more bitcoin, as the red-hot cryptocurrency market pushed the token’s price past $70,000.
The debt is purchasable in the form of senior notes, which will mature on March 15, 2031. The company said Wednesday in a statement that investors will receive interest-payable arrears, or payouts, twice a year. According to MicroStrategy, buyers can convert part or all of the notes into cash.
The sale follows the company’s recent bitcoin buying spree. The bitcoin-based business purchased more than $800 million worth of the cryptocurrency earlier this week, CNBC reported Wednesday, citing its recent interview with MicroStrategy CEO Michael Saylor. It did so by issuing roughly that amount in senior debt.
Bitcoin rose 2.6% on Wednesday, topping $73,000, The Block’s price data shows.
Shares of MicroStrategy were trading at $1,766 as of the time of writing, up more than 10% in the past 24 hours. The company’s stock has rallied more than 170% in the past year.
MicroStrategy isn’t the only crypto company attempting to borrow money for its business amid a strong digital assets market. Coinbase announced on Tuesday that it would sell $1 billion worth of senior notes to institutional buyers.
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