MicroStrategy plans to raise another $500 million in debt financing to buy more 'head assets'

Saylor recently called BTC the “top asset” and said “whoever has the most Bitcoins wins.”

According to a recent news report, MicroStrategy plans to raise $500 million through a bond issuance to continue expanding its Bitcoin reserves. The plan comes less than a week after the company's latest similar debt sale.

The latest senior convertible notes have a maturity date of March 15, 2031, and are scheduled to provide investors with semi-annual interest payments. The offering will include an option for $75 million of additional notes, subject to market conditions and demand.

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

Head assets

MicroStrategy recently successfully raised $700 million in bond financing and subsequently used the funds to purchase 12,000 Bitcoins for $821 million last weekend. The initial planned financing size was US$600 million, but due to increased investor demand, the financing size was eventually expanded.

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

Michael Saylor, founder and executive chairman of MicroStrategy, said his company remains “steadfast” in continuing to buy despite Bitcoin price fluctuations.

Saylor recently called Bitcoin a “top asset” in an interview with Yahoo Finance and said those who value fiat currencies will continue to be “poor.”

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

In response to a query about whether he would sell Bitcoin at some point, Saylor also reiterated his stance that Bitcoin is an exit plan. He said it would be foolish to exchange Bitcoin for something worse, saying:

“Whoever has the most Bitcoins wins.”

Value StoreSave

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

He also said 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 approximately $1 trillion, but Saylor predicts that this number could grow to 10x or even 100x. .

To put this into perspective mathematically, if Bitcoin’s market cap reaches $20 trillion, that means a single Bitcoin would be worth less than $1 million.

Saylor also said that in terms of market value, Bitcoin is expected to surpass gold because it is a high-quality asset that far exceeds gold and represents the digital transformation of capital.

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

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