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MicroStrategy, the software company led by Michael Saylor, has increased its planned offering of convertible senior notes from $500 million to $525 million.
The company intends to use the profits to acquire more bitcoin, according to its recent Press releasefollowing a strategy that has followed since 2020.
MicroStrategy announced that it had priced the 0.875% convertible senior notes due 2031 in a private offering to qualified institutional buyers. The notes will be sold at 100% of the principal amount with an annual interest rate of 0.875%, payable semiannually.
After March 2028, the company can redeem the notes for cash at 100% of the principal plus accrued interest if certain conditions are met. Holders may require MicroStrategy to repurchase the notes at 100% of the principal amount plus interest on September 15, 2028, or upon certain events that constitute a fundamental change.
The notes will be convertible into cash, MicroStrategy Class A common stock or a combination of both at the company's discretion.
MicroStrategy estimates that the net proceeds from the offering will be approximately $515 million after fees and expenses.
Led by founder and CEO Michael Saylor, MicroStrategy has been aggressive in its bitcoin accumulation strategy. The company now holds more than 200,000 bitcoins worth more than $13 billion at press time.
Saylor has said he intends to position MicroStrategy as the world's first “bitcoin development company,” although details on the proposal have been scarce.
In the past, MicroStrategy has released alpha applications, such as a tool that allows companies to reward employees through bitcoin lightning payments.
As a publicly traded company using its balance sheet to acquire bitcoin at scale, MicroStrategy's plans illustrate growing corporate interest in bitcoin as an emerging asset class and treasury asset, which can be protected against debasement and inflation.