MicroStrategy has raised its convertible note offering to $875 million, with plans to use the proceeds for redeeming existing debt and acquiring more Bitcoin.

Business intelligence firm MicroStrategy, one of the largest corporate holders of Bitcoin (BTC), said in a press release on Wednesday, Sept. 18, that it increased its offering to $875 million in convertible senior notes due 2028, up 25% from a previously announced $700 million.

According to the press release, the company, known for its aggressive Bitcoin acquisition strategy, plans to use the net proceeds to redeem all $500 million of its outstanding 6.125% senior secured notes due 2028 and allocate the remainder “to acquire additional Bitcoin and for general corporate purposes.” MicroStrategy estimates the net proceeds from the offering will be approximately $864.1 million, or $997.4 million if purchasers fully exercise their option to buy an additional $135 million in notes.

MicroStrategy seeks institutional backing for Bitcoin growth

The move comes just a week after MicroStrategy acquired an additional 18,300 BTC for approximately $1.11 billion, boosting its total reserves to approximately 244,800 BTC, which were acquired at an aggregate purchase price of approximately $9.45 billion and an average purchase price of around $38,585 per BTC.

The notes, carrying an interest rate of 0.625% per annum, will be sold to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and will mature on Sept. 15, 2028, according to the press release. They will be unsecured senior obligations, with holders having the option to convert them into cash, shares of MicroStrategy’s Class A common stock, or a combination of both.

The offering is expected to close on Sept. 19, subject to customary conditions, MicroStrategy noted.