The software analytics provider MicroStrategy will conduct an at-the-market offering of up to $1 billion of its Class A common stock. The proceeds will be used, among other things, to purchase Bitcoin.
MicroStrategy Launches “At the Market” Securities Offering for Flexibility to Sell Up to $1 billion of its Class A Common Stock Over Time $MSTRhttps://t.co/qouK8pFmBF
— Michael Saylor (@michael_saylor) June 14, 2021
The offering was preceded by a successful placement of $500 million of senior convertible bonds. High demand from investors allowed increasing the size of the issue from the initial $400 million to $500 million and lowered the coupon range from 6.25-6.5% to 6.125% per annum.
“The funds raised will go toward general corporate purposes, including the acquisition of the first cryptocurrency […] Management reserves the right with respect to the allocation of the proceeds,” according to the prospectus.
According to Buybitcoinworldwide, as of writing the firm owns 92,079 BTC valued at $3.73 billion.
In February 2021, to raise funds for the purchase of digital gold, MicroStrategy issued unsecured convertible senior notes totaling $1.05 billion.
In December 2020, the company sold investors similar notes totaling $650 million.
After the announcement of plans to issue convertible bonds, Citi analysts downgraded their ratings on MicroStrategy Inc.’s shares; their price subsequently fell sharply.
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