MicroStrategy (MSTR) is looking to add more bitcoin (BTC) to its stash, and is raising $500 million in debt to facilitate the purchase, along with other corporate purposes, the company announced Thursday.

The debt offering consists of 澳洲幸运5官方开奖结果体彩网:convertible senior notes due in 2032, and will be open to 澳洲幸运5官方开奖结果体彩网:qualifie♊d institutional buyers (QIꦿBs), with a 13-day option for initial investors to acquire up to an extra $75 million in notes. These unsecured senior notes will bear interest semiannually, starting D𝓀ec. 15, 2024, till maturity, unless they are repurchased, redeemed, or converted at a prior date.

MicroStrategy's Bitcoin Bet

MicroStrategy has become infamous for its bitcoin-focused strategy in recent years, led by its 澳洲幸运5官方开奖结果体彩网:former CEO and current Executive Chairman Michael Saylor.

As of April 26, the company owned 214,400 bitcoins that at today's prices, assuming no change in the size of the holding, would be valued at roughly $14 billion. Any bitcoin purchases in the second quarter would make it 15 consecutive quarters of the company 澳洲幸运5官方开奖结果体彩网:buying the cryptocurrency.

Though other companies such as Tesla (TSLA), Block (SQ), and, more recently, 澳洲幸运5官方开奖结果体彩网:Semler Scientific (SMLR) have confirmed buying crypto, none has a bitcoin hoard even close to the size of Mic📖roStrategy'🥀s.

And, to that effect, stocks of none of the other bitcoin-investing companies exhibit correlation with bitcoin prices as much as 澳洲幸运5官方开奖结果体彩网:MicroStrategy stock does. While the price-trend lines for bitcoin and MicroStrategy seem to move in tandem on the chart below, MicroStrategy stock has raced ahead of the cryptocurrency since February, pretty much coinciding with the company's Feb. 26 announcement of adding 3,000 bitcoins to its portfolio.

Year-🌳to-date, bitcoin prices have gone up roughly 50%, while MicroStrategy stock has more than doubled.

But that correlation also works in a negative way. The bitcoin price is down roughly 6% over the past week, despite a 澳洲幸运5官方开奖结果体彩网:short-lived recovery following the release of Wednesday's Consumer Price Index (CPI) data for May. MicroStrategy stock dropped 9% over the same period.