MicroStrategy will raise $700 million to buy more BTC

The firm had previously invested another $1,1 billion in bitcoin

17.09.2024 - 13:03

3 min

What’s new? Analytics software developer MicroStrategy will conduct a private placement of $700 million in convertible senior notes due 2028 to institutional investors. The company may also grant participants in the transaction an option to purchase up to $105 million of additional securities, depending on market conditions.

Press release

What else is known? Interest on the notes will be paid twice a year, on March 15 and September 15. Beginning September 15, 2027, holders will have the right to call for redemption for all or a portion of the securities. The notes will be convertible into cash, MicroStrategy’s Class A common stock, or a combination of cash and common stock at the option of the company.

MicroStrategy intends to use the net proceeds from this offering to repay $500 million in debt on previously issued notes, purchase additional bitcoins, and for general corporate purposes.

In early March, the company conducted a $600 million senior convertible note offering to purchase bitcoins. Later that month, it announced an additional $500 million offering.

In June, the company raised another $700 million through a similar procedure. Already at that time, its accounts held more than 1% of the total supply of the first cryptocurrency.

Benchmark allows the possibility of MicroStrategy to be included in the S&P 500 if new accounting standards are adopted

The move will allow the company to measure bitcoin assets on its balance sheet at fair value

MicroStrategy has been regularly investing in bitcoin for several years and is currently the largest holder of the asset among public companies. Its shares are traded under the ticker MSTR on the US stock exchange, Nasdaq at $137,98, having lost 4,91% over the day. Monthly growth amounted to 1%, and since the beginning of the year, securities have risen by 94,3%.

The day before, MicroStrategy founder and chairman Michael Saylor said that from August 6 to September 12, the company bought 18 300 BTC worth $1,11 billion at an average price of $60 408 per coin. In total, the company owns 244 800 BTC worth $9,45 billion at an average price of $38 585. Given the current BTC exchange rate, the company’s unrealized profit exceeds $5 billion.

Source: X.com