MicroStrategy Boosts Bond Offering By $300 Million For Next Bitcoin Buy

A day after MicroStrategy announced that it was planning a debt offering of $600 million to buy more bitcoin, the company revised that offering to add $300 million to the amount on the note bringing the total to $900 million.  MicroStrategy […]

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Via Smart CEO Magazine

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key takeaways

  • MicroStrategy says it has two missions as a company: develop business intelligence software and buy bitcoin

A day after MicroStrategy announced that it was planning a debt offering of $600 million to buy more bitcoin, the company revised that offering to add $300 million to the amount on the note bringing the total to $900 million. 

MicroStrategy said that the notes for this bitcoin buy would not bear any interest and would mature on February 15, 2027. The company also said that purchasers will be able to exercise a discretionary buy of an additional $150 million in notes. Should these additional discretionary notes be sold, the company will have an additional $1 billion to purchase more bitcoin. 

According to the offering, the notes will be worth 0.6981 shares of MicroStrategy class A common stock per $1,000 principal amount of notes, worth approximately $1,432.46 per share. This represents a premium of about 50 percent over the Feb. 16 trading price of MicroStrategy at $955. 

“Bitcoin never sleeps, pal,” CEO Michael Saylor tweeted Thursday morning.

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Currently, the business intelligence firm has bought 70,784 bitcoin so far, with an amount now worth around $3.6 billion. According to data aggregator Bitcoin Treasuries, the company with the next largest digital asset stash is Galaxy Digital with $836 million, or 16,402 bitcoin. 

The price of bitcoin didn’t jump upon news of MicroStrategy’s latest buy, as bitcoin had just recently broken through an all-time high. It’s currently trading at approximately $50,800 up 3.4 percent in the last day or 7.3 percent on-week.  

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