MicroStrategy Raises $1 Billion to Expand Bitcoin Holdings
MicroStrategy has secured $1.01 billion through a private offering of convertible senior notes maturing in 2028. The company plans to use a significant portion of these funds to increase its Bitcoin holdings.
The convertible notes offer investors the flexibility to convert them into cash or MicroStrategy stock. Additionally, MicroStrategy intends to redeem $500 million in senior secured notes, releasing collateral, including 69,080 Bitcoin.
In a recent SEC filing, MicroStrategy disclosed the acquisition of approximately 7,420 bitcoins for $458.2 million between September 13 and 19. This translates to an average price of approximately $61,750 per bitcoin.
The convertible senior notes carry a 0.625% annual interest rate and mature in 2027, unless converted, redeemed, or repurchased earlier. The initial conversion rate is set at 5.4589 shares of class A common stock per $1,000 principal amount of notes.
MicroStrategy plans to allocate the majority of the net proceeds from the offering to fund its aggressive Bitcoin acquisition strategy. The remaining funds will be used for general corporate purposes, primarily focusing on further expanding the firm’s Bitcoin holdings.
In addition to the recent offering, MicroStrategy announced the acquisition of approximately 18,300 Bitcoin worth $1.11 billion between August 6 and September 12. This brings the company’s total Bitcoin holdings to 244,800 as of September 12.
