Bitcoin

MicroStrategy has revealed the pricing of its convertible senior notes offering of $700 million. 
The <a href="https://www.microstrategy.com/press/microstrategy-announces-pricing-of-offering-of-convertible-senior-notes_06-14-2024" target="_blank" rel="">announcement</a> comes a day after the company outlined an initial $500 million offering, with this latest press release noting an upsize to $700 million aggregate principal amount of notes. MicroStrategy expects the offering to close on June 17, 2024. 
“The notes will be unsecured, senior obligations of MicroStrategy, and will bear interest at a rate of 2.25% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2024,” the company wrote. 
Notes mature on June 15, 2032, unless there’s an early repurchase, redemption or conversion. 
<h2 class="wp-block-heading" id="microstrategy-reveals-pricing-for-its-convertible-notes-offering">MicroStrategy reveals pricing for its convertible notes offering</h2> 
According to the firm’s statement published on June 14, the notes’ conversion rate is set at 0.4894 shares of MicroStrategy’s class A common stock per $1,000 principal amount of notes. 
This will be equivalent to approximately $2,043.32 per share and represent a 35% premium over the U.S. composite volume-weighted average price (VWAP) of the company’s stock on Thursday, June 13, 2024. That price stood at $1,513.46. 
In its update, MicroStrategy said the $700 million raise offers qualified institutional buyers the option for an additional $100 million. The initial offer on June 13 highlighted an additional $75 million of the aggregate principal amount. 
On Thursday, MicroStrategy announced it was redeeming $650 million of convertible notes due in 2025, with all conversion requests settled in shares. The redemption date is July 15, 2024.&nbsp; 
<h2 class="wp-block-heading" id="700m-to-buy-bitcoin">$700m to buy Bitcoin</h2> 
The company anticipates a total raise of $687.8 million, or up to $786.0 million should initial buyers fully exercise the option to acquire additional notes. 
As noted on Thursday, MicroStrategy plans to use proceeds of the notes offering to purchase additional Bitcoin (BTC). Currently, the company <a href="https://crypto.news/microstrategy-boosts-bitcoin-holdings-to-214400-btc-with-7-8m-purchase/" rel="">holds 214,400 BTC</a>, the largest by a corporate entity outside of the massive trove that supports BlackRock’s spot ETF.

MicroStrategy upsizes convertible offering to $700m to buy Bitcoin

Table of Contents

crypto.news

Other articles published on Jun 14, 2024

Keith Gill Increases GameStop Holdings

Ethereum Altcoin MEW to Destroy Shiba Inu and Dogecoin, According to Analyst

Bitcoin, Ethereum, Dogecoin Drag As Investors' Risk Appetite Cools: Analyst Sees Consolidation As...

Official Launch Announcement: Petoshi Exclusively Available on Centralized Exchanges

Upbit Expands Offerings with $ONDO, Trading in KRW, BTC, and USDT Markets to Begin Today

Top Crypto Presale: Investors Abandon BlastUp and Fantom For MoonBag As It Surpasses $2M, Could I...

Join our free newsletter for daily crypto updates!