MicroStrategy Plans to Raise $700 Million to Buy More Bitcoin, Influencing Other Miners’ Strategies

MicroStrategy has announced plans to raise $700 million through new senior convertible bonds maturing in 2028 to purchase additional Bitcoin. Since 2020, MicroStrategy has invested nearly $9.5 billion in acquiring over 244,000 BTC, setting an average purchase price of $38,585 per BTC.

The current market value of the company’s Bitcoin holdings exceeds $14 billion, making MicroStrategy the largest corporate holder of cryptocurrency. The firm intends to use the net proceeds from the bond offering to redeem $500 million of existing debt and allocate remaining funds to further invest in Bitcoin.

MicroStrategy’s aggressive Bitcoin accumulation is influencing other crypto mining companies. Cathedra Bitcoin announced a shift in strategy, deciding to cease mining operations to focus on purchasing Bitcoin on the open market. This move reflects a trend among miners who are facing reduced profitability due to halved rewards and increased network difficulty.