MicroStrategy to Convert $6B Debt to Equity in 3-6 Years

MicroStrategy, the business intelligence firm that has become a major corporate holder of Bitcoin, announced plans to convert its $6 billion in convertible debt into equity over the next three to six years, a strategy aimed at easing financial obligations while maintaining its aggressive cryptocurrency accumulation. The disclosure, shared by founder and executive chairman Michael Saylor on social media, comes amid Bitcoin's recent volatility, with the company affirming its ability to fully cover its debt even if the cryptocurrency's price plummets 88 percent to $8,000.

The company currently holds 714,644 Bitcoin, valued at approximately $49 billion based on the asset's price of around $68,400 as of Monday. This reserve exceeds the $6 billion in outstanding convertible senior notes by a significant margin, providing a buffer against market downturns. MicroStrategy's average purchase price for Bitcoin stands at about $76,000, leaving the firm down roughly 10 percent on its holdings at current levels. Despite this, the company has continued buying, with Saylor posting an accumulation chart on Sunday that signals another purchase, marking 12 straight weeks of acquisitions.