In a strategic move to further solidify its position as a leading player in the cryptocurrency market, Virginia-based business intelligence firm MicroStrategy has announced a $700 million convertible bond offering. The primary objective of this offering is to raise capital to redeem $500 million in existing debt and acquire more Bitcoin, thereby expanding its already substantial reserves.

The bond offering, which is targeted at accredited institutional investors, is set to mature in 2028. The notes will carry interest payable semi-annually and can be convertible into cash, MicroStrategy shares, or a combination of both. This move reflects MicroStrategy’s continued reliance on leveraging debt to amplify its Bitcoin holdings while managing its existing debt obligations.

Since 2020, MicroStrategy has raised billions of dollars through various debt offerings, including $603.75 million in convertible notes in March 2024 and $800 million in June 2024. As of the time of writing, the company holds an impressive 244,800 BTC, valued at approximately $14 billion, which accounts for roughly 1.17% of Bitcoin’s total supply of 21 million.

Bhutan Emerges as a Key Player in the Bitcoin Market

In a separate development, the Kingdom of Bhutan has emerged as a significant player in the Bitcoin market. The country’s Bitcoin holdings are managed through its state-owned investment arm, Druk Holding & Investments (DHI). According to on-chain data from blockchain intelligence firm Arkham, Bhutan holds approximately 13,029 BTC as of September 16.

What sets Bhutan apart from other countries that have acquired Bitcoin through seizures or other means is that its Bitcoin holdings are derived from its own mining operations. The country has been quietly mining Bitcoin through a partnership with Bitdeer Technologies, a Nasdaq-listed crypto mining firm. This collaboration aims to increase Bhutan’s Bitcoin mining capacity sixfold by introducing new hardware.

Bhutan’s state-backed mining efforts are designed to diversify its revenue streams, particularly in light of the upcoming Bitcoin halving, which is expected to reduce mining rewards by 50%. Interestingly, Bhutan’s holdings surpass those of El Salvador, one of the most vocal proponents of Bitcoin, which holds around 5,800 BTC. The US remains a significant governmental holder of Bitcoin, with approximately 213,246 BTC, while China follows with 190,000 BTC.

Growing Institutional and Governmental Interest in Bitcoin

These two trends – MicroStrategy’s continued BTC accumulation and Bhutan’s foray into Bitcoin mining – illustrate a growing trend of companies and governments increasingly recognizing Bitcoin’s long-term potential. As Bitcoin’s influence in global finance expands, more institutions and countries may integrate the cryptocurrency into their financial strategies.

Key Takeaways:

• MicroStrategy’s $700 million convertible bond offering aims to raise capital to redeem existing debt and acquire more Bitcoin.
• The company holds 244,800 BTC, valued at approximately $14 billion, which accounts for roughly 1.17% of Bitcoin’s total supply.
• Bhutan has emerged as a significant player in the Bitcoin market, with approximately 13,029 BTC derived from its own mining operations.
• The country’s state-backed mining efforts aim to diversify its revenue streams and increase its Bitcoin mining capacity sixfold.
• Growing institutional and governmental interest in Bitcoin is expected to continue as the cryptocurrency’s influence in global finance expands.