MicroStrategy announces another senior notes offering to buy more bitcoin
MicroStrategy announced a senior notes offering last week, raising $800 million
MicroStrategy CEO Michael Saylor | michael.com modified by Blockworks
MicroStrategy’s not done buying up bitcoin — or, rather, offering convertible senior notes to do so.
The company, on Wednesday, announced that it was proposing another offering — this time for $500 million — of convertible senior notes due in 2031. The company added that it could raise an additional $75 million from the offer.
“MicroStrategy also expects to grant 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 $75 million aggregate principal amount of the notes,” a press release said.
The company said the funds from the sale will be used to “acquire additional bitcoin and for general corporate purposes.”
Read more: MicroStrategy once again holds more bitcoin than BlackRock’s IBIT — for now
The sale will only be offered to institutional investors.
The offering comes just after it proposed an initial offering of $600 million worth of convertible notes, which it later upsized to $700 million.
The previous convertible note offering closed on March 8.
The company announced on Monday that it had closed the $800 million offering of 0.625% senior convertible notes due in 2030.
‘The aggregate principal amount of the notes sold in the offering was $800 million,” the company said.
Earlier this week, the company announced that it bought 12,000 more bitcoin for $821 million. The purchases were made from Feb. 26 through March 10, a filing showed. MicroStrategy holds roughly 205,000 bitcoin.
Read more: MicroStrategy will use proceeds from convertible note sale to add to bitcoin stash
The company’s stock was slightly down in after-hours trading Wednesday, hovering around $1,735 a share. It closed the market day up roughly, continuing an upward trend.
Over the past year, it’s up 676%. In the past five days alone, the stock has soared 41%.
MicroStrategy’s most recent proposed note offering follows on the coattails of Coinbase, which announced a proposed offering of $1 billion in senior convertible notes Tuesday evening.
The company said that it would be using the proceeds for general corporate purposes, according to a press release.
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 Forward Guidance newsletter.
Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.
The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.
