MicroStrategy has upsized its convertible note offering from $500 million to $700 million, with the intent to use the proceeds for the acquisition of additional Bitcoin. The announcement came in a press release on Friday.
The convertible notes, which are to mature in June 2032, will yield an annual interest rate of 2.25%. These notes will be available to institutional investors in a private offering and are characterized as unsecured, senior obligations of the company. The Virginia-based company, under the executive chairmanship of Michael Saylor, has also provided initial buyers with an option to purchase up to an additional $100 million of the notes within 13 days post-issuance.
Since 2020, under the leadership of CEO Michael Saylor, MicroStrategy has been actively accumulating Bitcoin, now holding approximately 214,400 BTC, worth an estimated $14 billion, making it the largest publicly listed holder of Bitcoin.
The closing of the offering is anticipated for June 17, 2024, with MicroStrategy estimating net proceeds of about $687.8 million, or approximately $786.0 million if the option to purchase additional notes is fully exercised. These proceeds, after deducting initial purchaser discounts, commissions, and estimated offering expenses, are earmarked for additional Bitcoin acquisitions and general corporate affairs.
This latest financial maneuver reflects MicroStrategy's continued conviction in Bitcoin as the company's primary treasury reserve asset.
