MicroStrategy Announces New 2032 Notes as Bitcoin Holdings

MicroStrategy, the largest publicly-traded corporate holder of Bitcoin, announced on Friday that its notes maturing in 2032 will be priced to yield 2.25%. Additionally, the firm has offered buyers the option to purchase an extra $100 million of these senior securities.

Michael Saylor, MicroStrategy’s chairman and co-founder, initiated Bitcoin purchases in 2020 as a strategy to hedge against inflation and diversify from holding cash. Since then, MicroStrategy has acquired approximately $12.7 billion worth of Bitcoin, amounting to over 1% of the total cryptocurrency ever created. Since Saylor's initial purchase, Bitcoin has surged by more than 600%.

This year, Bitcoin has seen a rise of around 60%, partly fueled by optimism surrounding the potential launch of US exchange-traded funds (ETFs) that invest directly in the cryptocurrency. Reflecting this positive trend, MicroStrategy’s shares have also seen a significant increase, soaring about 135% in the same period.