Microstrategy raises $700M of convertible notes amid stock rally
Corporate bitcoin (BTC) investor MicroStrategy is looking to sell $700 million, up from the $600 million it announced days ago, amid the ongoing cryptocurrency bull market in exchange-traded notes.
In the year According to details disclosed on March 6, MicroStrategy's 2030 convertible notes bear interest at a rate of 0.625% per annum at an interest rate of $1,497.68 per share, representing a 21% premium over the then-current trading price. Publication.
“Noteholders may request MicroStrategy to repurchase their Notes on September 15, 2028 or, upon the occurrence of certain events, to repurchase the Notes for a principal amount equal to 100% of the principal amount of the Notes, plus any accrued and unpaid interest,” the company said.
The Notes are available only to accredited or institutional investors. MicroStrategy may redeem the notes for cash after March 22, 2027, provided the common stock trades consistently above 30% of the stated conversion price.
MicroStrategy expects to collect a net $684.3 million from the sale, or $782.0 million if buyers exercise their options, and use the proceeds to purchase additional bitcoins or for corporate expenses. The company currently has 193,000 BTC at an average price of $31,544, which represents a balance of $12.9 billion and a return of 112% since inception. At the same time, the company's stock returned 429.2% as part of the broader Bitcoin bull market.
MicroStrategy Chairman and Co-Founder Michael Saylor is an avid Bitcoin fan who included the digital asset in the firm's corporate asset allocation strategy in August 2020. Since then, MicroStrategy has consistently added BTC to its corporate treasury every quarter. In a panel discussion at the Bitcoin Atlantis conference on March 1, Saylor argued that AI and cryptocurrencies could bring a decade-long “gold rush” for Bitcoin.
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