Microstrategy, the world’s largest corporate owner of Bitcoin (BTC), is looking to increase its cryptocurrency holdings by raising funds through a unique avenue. The company recently announced its intention to offer $500 million worth of convertible senior notes in a private placement.

These convertible senior notes are a special type of bond that gives investors the option to either hold them until maturity or convert them into the company’s common stock. Microstrategy plans to sell these notes to institutional buyers, with a maturity date set for June 15, 2032. The funds raised from this offering will be used to acquire more Bitcoin as well as for general corporate purposes.

According to Microstrategy, these notes will be unsecured, senior obligations and will accrue interest semi-annually, starting from December 15, 2024. The company also has the option to redeem the notes for cash, subject to certain conditions, on or after June 20, 2029.

The success of this proposed offering is dependent on market conditions and other factors, and there is no guarantee that it will be completed as planned. Currently, Microstrategy holds a substantial 214,400 BTC, valued at $14.260 billion based on the current price of $66,514. The company initially purchased this Bitcoin at an average price of $35,158, totaling $7.538 billion.

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