The United States-based IT business MicroStrategy, which is well-known for its unwavering dedication to Bitcoin, is planning to raise $500 million by means of convertible senior notes.

In a private transaction, these loans, which are due in 2032, are made available to major investors who meet the requirements, and they come with the opportunity to purchase an extra $75 million in notes.

Bitcoin will act as their principal reserve asset, and the monies that were raised will be used to purchase additional Bitcoin. On June 15 and December 15 of each year, the notes will deliver interest payments to the holders.

When the notes reach their maturity date of June 15, 2032, investors will be able to receive their money back, along with interest, if they continue to hold onto them until that date.

From the 20th of June in 2029, investors will have the option to make an early payment on the notes. Depending on the choice made by MicroStrategy, the notes may be converted into MicroStrategy shares or a combination of cash and stock.

This action suggests that MicroStrategy is confident in the future value of Bitcoin, which has the ability to influence other businesses and investors who may view their actions as a vote of confidence in Bitcoin.

Last week, MicroStrategy, has successfully reached a $40 million agreement with the District of Columbia to settle tax fraud case.