MicroStrategy raises convertible notes offering to $700M amid stock rally
Corporate Bitcoin ( BTC ) investor MicroStrategy is seeking to sell $700 million, up from $600 million announced just days prior, in convertible notes amid an ongoing cryptocurrency bull market.
According to details disclosed on March 6, the 2030 MicroStrategy convertible notes will bear an interest rate of 0.625% per annum with a conversion price of $1,497.68 per share, representing a premium of 21% compared to its current trading price of $1,234.48 at the time of publication.
"Holders of notes may require MicroStrategy to repurchase their notes on September 15, 2028, or upon the occurrence of certain events that constitute a fundamental change under the indenture governing the notes at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus any accrued and unpaid interest," the firm said.
The notes are only available to accredited or institutional investors. MicroStrategy may redeem the notes for cash after March 22, 2027, if its common stock is trading consistently above 30% of the set conversion price.
MicroStrategy expects to raise $684.3 million net from the sale, or $782.0 million if purchasers exercise their options, and use the proceeds to purchase additional Bitcoin or for corporate expenses. The company currently holds 193,000 BTC acquired at an average price of $31,544, representing a balance of $12.9 billion and a return of 112% since inception. Simultaneously, the company’s stock has returned 429.2% as part of the broader Bitcoin bull market.
Michael Saylor, chairman and co-founder of MicroStrategy, is an avid Bitcoin enthusiast who first incorporated the digital asset into the firm’s corporate asset allocation strategy in August 2020. Since then, MicroStrategy has consistently added BTC to its corporate treasury every quarter. During a panel discussion at the Bitcoin Atlantis conference on March 1, Saylor argued that AI and exchange-traded funds would usher in a decade-long "gold rush" for Bitcoin.
Related: Bitcoin price hits $72K in South Korea as ‘Kimchi premium’ returns
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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