MicroStrategy ups convertible note sale to $700M to buy more bitcoin

The company’s stock was up over 20% in intraday trading after bitcoin hit a new all-time high Tuesday

article-image

MicroStrategy and Adobe Stock modified by Blockworks

share

MicroStrategy is upsizing its convertible debt offering to $700 million from $600 million.

The company announced the offering on Monday, adding that it planned to use “net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes.” 

The Wednesday upsizing also included the pricing of the notes, and plans to close the offering on March 8. 

MicroStrategy “also granted to the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $100 million aggregate principal amount of the notes,” the press release said.

The notes are issued at an interest rate of 0.625% “per annum, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2024” with a maturity date in March 2030.

Read more: After BTC hits all-time high, bitcoin ETF volumes also peak

However, the company may redeem the notes depending on certain scenarios March 22, 2027. 

MicroStrategy expects the proceeds to total $684 million or $782 million, depending on if the purchases exercise their option to buy more notes. 

In addition to buying more bitcoin (BTC), the Wednesday release also revealed that the funds would be used for “general corporate purposes.”

The company’s stock was soaring in intraday trading, up over 20% at time of publication. Shares traded hands at $1,260. The stock is up over 444% in the past year. 

MicroStrategy’s upsizing comes a day after bitcoin hit a new all-time high, surpassing a high set in November 2021.

The company holds 193,000 bitcoin currently, after buying more last month. Bitcoin’s trading around $67,000 at publishing time.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Permissionless is a conference for founders, application developers, and users. Come meet the next generation of people building and using crypto.

recent research

Blinks Report Image.png

Research

Blinks enable the ability to vampire attack user monetization of existing networks by inserting onchain and financialized functionalities directly within the popular social feeds and digital experiences of today.

article-image

Plus, how the FTX collapse played out in Asian countries

article-image

Kalshi founder Tarek Mansour said Thursday marked the “the first trade on regulated election markets in nearly a century”

article-image

I was excited about being on the precipice of realigning societal incentives and solving many issues plaguing our modern financial world

article-image

Cypherpunk Holdings has rebranded to Sol Strategies in a pivot to a Solana-first investment approach

article-image

BitGo’s wrapped bitcoin (wBTC) has a new custodial challenger

article-image

Make no mistake: Tether makes a ton of money. But exactly how much depends a lot on the price of bitcoin.