🌎 MicroStrategy Completes $1.01 Billion Convertible Notes Sale

MicroStrategy has successfully completed its $1.01 billion offering of convertible senior notes, set to mature in 2028, less than a week after announcing the sale.

MicroStrategy’s $1.01 Billion Offering

MicroStrategy, one of the largest corporate Bitcoin holders, announced the completion of a $1.01 billion offering of 0.625% convertible senior notes due 2028. The offering, which was sold to institutional investors under Rule 144A of the Securities Act, was completed in record time.

Purpose of the Offering

The net proceeds from the sale are intended to acquire additional Bitcoin and for general corporate purposes. The Virginia-based company issued the notes with a 40% premium over its common stock price, setting an initial conversion price of approximately $183.19 per share. Additionally, MicroStrategy exercised an option to issue an additional $135 million in notes, bringing the total to $1.01 billion.

Utilization of Raised Capital

The capital raised will be used to redeem the company’s $500 million 6.125% senior secured notes due 2028, which were originally secured with 69,080 BTC. The remaining funds will be directed toward the purchase of additional cryptocurrency and for general corporate purposes. The notes are convertible into either cash, shares of common stock, or a combination of both at MicroStrategy’s discretion.

MicroStrategy’s Bitcoin Strategy

Founded by Michael Saylor, MicroStrategy continues to double down on its Bitcoin strategy, despite market volatility. The company is one of the largest institutional holders of Bitcoin, owning around 244,800 BTC as of September, with a total worth exceeding $15.4 billion. This offering follows MicroStrategy’s recent purchase of 18,300 BTC for $1.11 billion, underscoring its commitment to expanding its crypto holdings.