MicroStrategy to Raise $500 Million to Buy Bitcoin
14 Mar, 2024 ● Crypto News
MicroStrategy and its executive chairman Michael Saylor remain steadfast in their relentless pursuit of acquiring Bitcoin (BTC), with a new proposed offering of $500 million in convertible notes aimed at further expanding their Bitcoin holdings.
The company, known for its transition from business intelligence to a "Bitcoin development" firm, unveiled its latest fundraising initiative on March 13.
This offering, structured as a private senior convertible notes issuance, is intended not only for acquiring additional Bitcoin but also for potential general corporate purposes.
Over the past two weeks, MicroStrategy has initiated fundraising efforts totaling $1.3 billion, including a recently concluded $800 million senior convertible notes offering.
Originally announced as a $600 million offering, it was subsequently upsized to $700 million, with an additional $100 million aggregate principal amount subject to specific conditions.
These funds were utilized to augment MicroStrategy’s Bitcoin treasury reserve by acquiring an additional 12,000 BTC.
With a current holding of 205,000 BTC valued at $15 billion, MicroStrategy has realized significant returns on its investment, standing at $8.1 billion or 117% appreciation.
The company is now just 5,000 Bitcoin shy of holding at least 1% of Bitcoin’s theoretical maximum supply.
At current market prices, the $500 million proposed offering could secure approximately 6,850 Bitcoin.
MicroStrategy’s senior convertible notes, which are debt securities convertible into equity-like stock, will accrue interest semi-annually and are set to mature on March 15, 2031, unless earlier repurchased, redeemed, or converted in accordance with their terms.
These notes offer flexibility in conversion, allowing for conversion into cash, shares of MicroStrategy’s class A common stock, or a combination of both.
The stock price of MicroStrategy (MSTR) continues to soar, surging by 10.85% to $1,766 on March 13, according to Google Finance.
This represents a remarkable 254% increase since February 6 and positions MicroStrategy as one of the top performers on the Nasdaq this year.
The upward trajectory of MSTR's stock price has been bolstered by Bitcoin's recent rally, which has seen a 46.1% surge over the last month to reach $73,050 at the time of publication, according to CoinGecko.
Sources:
https://cointelegraph.com/news/microstrategy-second-notes-offering-march-buy-more-bitcoin
https://x.com/saylor/status/1768009710031024202
