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# Spotify In Hunt For $500 Million In Convertible Debt
- URL: https://www.hypebot.com/spotify-in-hunt-for-500-million-in-convertible-debt/
- Published: 2016-01-28T09:58:56.000Z
- Updated: 2016-01-28T09:58:56.000Z
- Description: Burning cash, getting ready for battle or both? Just 6 months ago, Spotify completed a $526 million funding round; and now the music streamer is reportedly meeting with bankers and investors in. Continue reading [https://www.hypebot.com/hypebot/2016/01/spotify-in-hunt-for-500-million-in-convertible-
- Author: Bruce Houghton
- Tags: Music Business, Music Tech, Streaming, music, Spotify, #wp, #wp-post, #Import 2026-01-21 10:22

**[![cash](http://hypebot.typepad.com/.a/6a00d83451b36c69e201b8d197f564970c-100wi "cash")](http://hypebot.typepad.com/.a/6a00d83451b36c69e201b8d197f564970c-popup?ref=hypebot.com)Burning cash, getting ready for battle or both?** Just 6 months ago, **Spotify** completed a **$526 million** funding round; and now the music streamer is reportedly meeting with bankers and investors in search of **$500 million** in convertible debt.

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Spotify is preparing to meet with bankers and investors to raise an additional $500 million, according to documents obtained by Swedish newspaper [Svenska Dagbladet](http://www.svd.se/hemligt-dokument-avslojar-spotifys-borsplaner/om/naringsliv?ref=hypebot.com). The funds would be packaged as convertible notes that would become stock discounted by 17.5% if Spotify successfully completes an IPO. In the interim, Spotify would pay 4% interest, or $20 million per year.

**$1.5 Billion Raised + IPO Within 1 Year**

[![Spotify$](http://hypebot.typepad.com/.a/6a00d83451b36c69e201bb08b2acc2970d-150wi "Spotify$")](http://hypebot.typepad.com/.a/6a00d83451b36c69e201bb08b2acc2970d-popup?ref=hypebot.com)

If the deal is completed as expected, Spotify will have raised $1 billion in less than 12 months and more than $1.5 billion since launch.

The documents also reveal Spotify's plan to go public within a year. If the company fails to complete an IPO within 12 months, interest on the $500 million jumps to 2.5% every 6 months. The report also shows that Spotify believes that it currently controls 45% of the global streaming market. Multiple sources point to Spotify nearing 100 million paid and free users worldwide.

Since Spotify isn't commenting, it is hard to know if the $500 million signals a deeply unprofitable business model, smart cash acquisition to bankroll the battle ahead or maybe a bit of both.

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