MicroStrategy announced the details of its third debt offering of 2024, underlying its commitment to Bitcoin. The technology firm intends to raise $700 million with the issuance of convertible senior notes that will mature in 2028.
The refinancing of debt is the major purpose behind this financing move, besides increasing its Bitcoin reserve. MicroStrategy would utilize $500 million to pay back existing senior secured notes, while the rest would go for more Bitcoin and company expenses.
This latest offering follows two similar moves earlier in the year. In March, MicroStrategy successfully raised approximately $700 million, followed by a $500 million convertible senior notes issuance in June, set to mature in 2032.
That means loading up on debt to buy Bitcoin, too-a strategy making it one of the largest public holders in the world. At the close of Sept. 13, the MicroStrategy balance sheet recorded an unprecedented load of 244,800 BTC valued at approximately $14 billion.
However, this significant Bitcoin exposure has not been without its challenges. The company recorded a net loss of $102.6 million, or $5.74 per share, in the second quarter of 2024. This compares to net income of $22.2 million in the same period one year ago. The loss was mainly due to a $180.1 million digital asset impairment-a reflection of the turmoil that comes from large Bitcoin reserves.
Despite those financial hurdles, the performance of MicroStrategy's stock has been stellar. In a year's time, shares of the company have surged by almost 295% and changed hands at $134 each on September 16. So far this year, shares of MicroStrategy have surged 96%.