MicroStrategy, the leading corporate holder of Bitcoin (BTC), has announced plans to raise $600 million in a move aimed at expanding its Bitcoin reserves.
Confirmed in a statement released on March 4, the business intelligence firm detailed its issuance of senior convertible notes as part of the fundraising initiative. Senior convertible notes, a form of debt security, grant holders the option to convert them into equity at a later date, with priority status in cases of bankruptcy or liquidation.
The net proceeds from the sale of these notes will be allocated towards purchasing more Bitcoin for general corporate purposes, MicroStrategy disclosed. Additionally, the company intends to offer the initial purchasers of the notes an option to acquire up to an additional $90 million aggregate principal amount.
Set to mature on March 15, 2030, the notes can be repurchased, redeemed, or converted into cash or shares of MicroStrategy’s class A common stock in accordance with their terms.
MicroStrategy Announces Proposed Private Offering of $600 Million of Convertible Senior Notes $MSTR https://t.co/PEN5dxesIb
— Michael Saylor⚡️ (@saylor) March 4, 2024
MicroStrategy’s stock surged over 2% to $1,359 on March 4, paralleling Bitcoin’s 8.1% increase to $67,480 over the last 24 hours, nearing its all-time high of $69,000. This development coincides with MicroStrategy’s remarkable 172% rise over the month, spearheaded by its founder and executive chairman, Michael Saylor, who has been instrumental in the company’s Bitcoin investment strategy.
With 193,000 BTC currently in its reserves, valued at $13 billion, MicroStrategy has enjoyed significant gains on its investment, with an average buy price of $31,550.
