Business intelligence company and corporate bitcoin holder MicroStrategy is seeking to raise $500 million through a convertible note offering, with an option for an additional $75 million.
The company said it will issue the notes due 2032 in a private placement to qualified institutional investors, subject to market conditions and other factors. statement These are unsecured, bear interest semi-annually and are convertible into cash, MicroStrategy Class A common stock, or both.
MicroStrategy plans to use the proceeds from this round of funding “to acquire additional Bitcoin and for general corporate purposes.”
The convertible notes would provide MicroStrategy with flexibility to manage its debt while potentially benefiting from a rising stock price. MicroStrategy has been investing heavily in Bitcoin since 2020, reflecting its strategy of using debt financing to grow its Bitcoin holdings.
MicroStrategy offered a $600 million convertible note offering in March after its stock price soared, then bought another 9,245 BTC the same month for $623 million in cash. In March and April, the company now has 214,400 employees. Bitcoin
-2.59%
$7.54 billion in total, $35,180 per Bitcoin. MicroStrategy’s Bitcoin holdings are currently valued at $14.5 billion. Bitcoin price.
MicroStrategy shares are currently trading at $1,581, down 1.5% in pre-market trading, according to TradingView. However, the company’s shares are up more than 30% over the past month and 130% since the start of the year.
MicroStrategy to redeem $650 million in 2025 convertible notes
MicroStrategy said in a separate statement on Thursday: Announced Redemption of $650 million of convertible senior notes due 2025. The redemption was completed on July 15 at 100% of the principal amount plus accrued interest.
Holders of these notes will be able to convert them into MicroStrategy stock at a ratio of 2.5126 shares for every $1,000 principal amount, resulting in a conversion price of $397.99 per share. MicroStrategy will settle all such conversions in Class A common stock.
MicroStrategy issued $650 million in 0.75% convertible senior notes due 2025 in December 2020 as part of a strategy to acquire Bitcoin and adopt the cryptocurrency as its primary reserve asset.
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