MicroStrategy Incorporated (Nasdaq: MSTR) has Announced its plans to offer an aggregate principal amount of $600 million of convertible senior notes due 2030 in a private offering to qualified institutional buyers. The offering is subject to market conditions and other factors, with the potential to increase by an additional $90 million.
JUST IN: MicroStrategy to raise $600 million to buy more bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin pic.twitter.com/oCKnn8KDpy
– bitcoin Magazine (@BitcoinMagazine) March 4, 2024
These senior unsecured obligations of MicroStrategy will bear interest payable semiannually and will mature on March 15, 2030. The company intends to grant the initial purchasers an option to purchase additional notes within a 13-day period.
MicroStrategy plans to use the net proceeds from the offering to “purchase additional bitcoins and for general corporate purposes.” The offering will be made to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.
MicroStrategy, which describes itself as “the world's first bitcoin development company,” is dedicated to supporting the growth and development of the bitcoin network. The company uses its cash flows and proceeds from equity and debt financing to accumulate bitcoin, which serves as its main treasury reserve asset.
The offering will help strengthen MicroStrategy's position in the bitcoin market and further its mission of promoting bitcoin adoption and innovation. However, the offering is subject to uncertainties related to market conditions and terms of completion, as described in MicroStrategy's recent filings with the Securities and Exchange Commission.
MicroStrategy stock has outperformed bitcoin so far in 2024, rising 94.70% at the time of writing, compared to a 58.22% rise for btc.
