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

March 6, 2024 01:47 pm

MicroStrategy and Adobe Stock modified by Blockworks

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.

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.

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