MicroStrategy, a prominent holder of Bitcoin, has successfully completed a new convertible notes offering in order to increase its Bitcoin reserves. The former CEO, Michael Saylor, made the announcement on March 18th, revealing that MicroStrategy had finalized the offering of 0.875% convertible senior notes due in 2031. The total amount raised through the offering was $603.75 million, including an additional $78.75 million from an option to purchase. The notes were sold privately to qualified institutional buyers in accordance with US securities laws. This comes shortly after MicroStrategy completed an $800 million convertible note offering on March 8th, using the proceeds to acquire 12,000 BTC. Similar to the previous offering, the net proceeds from this new sale will also be used to purchase additional Bitcoin. Saylor further announced the acquisition of 9,245 BTC using the convertible notes proceeds and excess cash. The average price of the purchase was $67,382 per BTC, and MicroStrategy now holds a total of 214,246 BTC, which accounts for 1.02% of Bitcoin’s total supply. The firm acquired its entire Bitcoin stash at an average price of $35,160 per BTC. It is worth noting that MicroStrategy announced its second fundraiser on March 13th, aiming to raise $600 million through a private senior convertible notes offering. These notes can be converted into equity at a later date and will mature on March 15, 2031. Saylor has established himself as a prominent Bitcoin advocate and has stated that he has no plans to sell his Bitcoin holdings.
MicroStrategy Raises $604M in Notes Sales to Acquire 9K Bitcoin