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MicroStrategy's Bitcoin investment approach started in 2020, back when most corporate entities were doubtful of the cryptocurrency's potential. Ivan Radic/flicker

KEY POINTS

  • MicroStrategy noted that its private offering is still subject to market conditions
  • The company announced a similar offering of $600m in convertible notes just last week
  • MicroStrategy said it has 205,000 Bitcoin holdings as of the weekend

Business software provider MicroStrategy is not done snapping up Bitcoin as it announced Wednesday that it intends to offer $500 million worth of convertible senior notes due in 2031 to institutional buyers so it can purchase more of the world's first decentralized cryptocurrency.

MicroStrategy said that the notes offered in private offering, which is subject to market conditions, will be convertible into either cash, shares of the company's class A common stock, or can be converted into a combination of cash and MicroStrategy stock.

Senior notes are a form of debt financing that provides lenders priority claim to cash flows and assets if the offering company goes bankrupt.

The latest announcement comes less than 10 days after it expressed intent to offer $600 million worth of convertible senior notes "to persons reasonably believed to be qualified institutional buyers" as part of its Bitcoin investment strategy.

On Tuesday, the Tysons, VA-based business intelligence firm, which announced earlier this year its plan to transition to a "Bitcoin development company," revealed that it purchased 12,000 more Bitcoins worth approximately $821.7 million within just a two-week period.

Before the said purchase, BitMEX Research revealed that MicroStrategy had been toppled by the world's largest asset manager BlackRock in terms of Bitcoin holdings as the asset management titan held 197,943 BTC as of Monday.

With its latest Bitcoin purchase, MicroStrategy now has a massive trove of 205,000 Bitcoins and it has regained its place as the world's largest corporate holder of the cryptocurrency.

The company first purchased BTC in 2020. At the time, the corporate realm was bearish about the new digital currency, but MicroStrategy founder and executive chairman Michael Saylor pushed through with the company's Bitcoin strategy, snapping up thousands of BTC annually.

Bitcoin has been on an upward trend in recent weeks, breaking its own records consecutively. As of late Wednesday, Bitcoin's price stood at over $72,000, a number it passed Monday to set a new all-time high. It raced past $69,000 last week, breaking its earlier November 2021 peak of $68,991.

Saylor, a known Bitcoin maximalist, recently predicted that the cryptocurrency will "eat gold," considering how it has all of gold's attributes, but without the "defects" that the world's highest prized treasure is known for.

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