MicroStrategy, a company known for its aggressive Bitcoin investment strategy, has increased its convertible note offering to $700 million, up from the previously announced $600 million.
MicroStrategy, a company known for its aggressive Bitcoin investment strategy, has increased its convertible note offering to $700 million, up from the previously announced $600 million. This move comes amidst a surging cryptocurrency market, with Bitcoin recently reaching briefly touching new all-time highs.
The notes will have a maturity date of 2030 and carry an interest rate of 0.625% per year. They will be convertible into MicroStrategy shares at a price of $1,497.68 per share, representing a 21% premium over the current market price.
Holders of the notes will have the option to require MicroStrategy to repurchase them under specific circumstances, while MicroStrategy itself can redeem the notes for cash after March 2027 if its stock price meets certain conditions.
MicroStrategy expects to raise $684.3 million net through this offering, potentially reaching $782.0 million if additional options are exercised. These funds will be used to acquire more Bitcoin or for corporate expenses.
The company currently holds 193,000 BTC, acquired at an average price of $31,544, representing a total investment of $12.9 billion and a return of 112%. This strategy has also driven a 429.2% increase in MicroStrategy's stock price.
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