MicroStrategy will raise $600 million through the issuance of convertible bonds for qualified investors. The funds will be used for “purchasing additional bitcoins and general corporate purposes.”
MicroStrategy Announces Proposed Private Offering of $600 Million of Convertible Senior Notes $MSTR https://t.co/PEN5dxesIb
— Michael Saylor⚡️ (@saylor) March 4, 2024
The offering will depend on “market and other conditions.”
The unsecured senior bonds will mature in 2030. From 2027, MicroStrategy may convert the securities into shares. On September 15, 2028, holders can demand redemption.
The company plans to offer buyers an option to purchase additional bonds worth up to $90 million. Amid a bitcoin rally to $66,000, MicroStrategy’s market capitalization reached a record $22.64 billion. Its shares surged 23.59% in one day, reaching $1334.
According to BitcoinTreasuries, the company holds 193,000 BTC valued at $13 billion. Unrealized profit has reached $6.92 billion.
On February 26, MicroStrategy increased its holdings by 3000 BTC. In the same month, the firm reported purchasing 850 BTC for $37.2 million in January.
In October 2023, the company acquired 155 BTC for $5.3 million. In November, it bought an additional 16,130 BTC for $593.3 million, and in December, another 14,620 BTC for $615.7 million.
Previously, its founder Michael Saylor stated that in the near and long term, the firm does not intend to sell its bitcoin holdings.
MicroStrategy plans to refocus as a “developer of bitcoin and related products.” Since its inception, it has concentrated on creating and supporting analytical software.