MicroStrategy will additionally issue $500 million worth of bonds to buy BTC

The company has already increased the amount of asset in the accounts to 205 000 coins

14.03.2024 - 10:27

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2 min

What’s new? Analytics software company MicroStrategy (MSTR) has announced an additional $500 million convertible senior notes offering. The securities, maturing through 2031, will be privately offered to qualified institutional buyers, with the net proceeds to be used to increase bitcoin investments and for general corporate purposes. Earlier this month, the company sold $600 million worth of similar securities for the same purpose.

Press release

What happened? Interest will be paid on these unsecured securities twice a year, on March 15 and September 15 of each year, beginning September 15, 2024. The notes will mature on March 15, 2031, unless previously redeemed, repaid, or converted in accordance with their terms. Subject to certain conditions, on or after March 22, 2028, MicroStrategy may exchange for cash all or any portion of the notes.

Holders have the right to require MicroStrategy to redeem for cash all or any portion of their notes on September 15, 2028. The notes will be convertible into cash, MicroStrategy’s Class A common stock, or a combination of cash and Class A common stock at MicroStrategy’s option.

MicroStrategy also plans to give initial purchasers a 13-day option to purchase up to $75 million in additional bonds. The decision on the realization of this offer has not been made yet, it will depend on the market and other conditions.

On March 10, MicroStrategy once again increased its bitcoin investments. It bought 12 000 BTC worth about $821,7 million at an average cost of $68 477 per coin. In total, her accounts hold 205 000 bitcoins worth $6,91 billion at an average value of $33 706 per BTC. Given the current exchange rate at the time of writing ($73 321), MicroStrategy’s unrealized profits exceed $8,1 billion.

MicroStrategy is the largest holder of the first cryptocurrency among publicly traded companies. Its shares under the ticker MSTR are traded on Nasdaq, As of March 14, the value of one security was $1766, adding 10,85% overnight and 155% YTD.

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