MicroStrategy Inc. has announced a $500 million private offering of convertible senior notes due 2031 to buy more Bitcoin.

The company, under CEO Michael Saylor, holds over 200,000 BTC valued at nearly $15 billion, and recently bought 12,000 BTC for $821.7 million.

JPMorgan has expressed concerns that MicroStrategy's debt-funded Bitcoin purchases could add risk to the market and potentially lead to future deleveraging.

MicroStrategy's stock has significantly increased by over 100% year-to-date, outpacing Bitcoin's own 60% increase in the same period.

Analysts have given MicroStrategy a Strong Buy rating, but with an average price target of $1,383.33, there's an implied downside potential of 21.7%.

The convertible bonds offer a low yield between 0.375%-0.875% and can be converted if the stock price rises 40%-45% from current levels.

The company's aggressive Bitcoin investment strategy has led to $7.7 billion in unrealized profits, with the potential for higher returns if Bitcoin hits $100,000 by mid-2025.

Proceeds from the bond sale may also serve general corporate purposes, not exclusively Bitcoin purchases.