MicroStrategy and its executive chairman Michael Saylor are demonstrating their unwavering commitment to buying Bitcoin (BTC) by launching a new proposal to raise $500 million through convertible notes. This fundraising initiative, announced on March 13, follows the company’s recent $800 million senior convertible note offering. The funds raised will be used to acquire additional Bitcoin and for general corporate purposes.
MicroStrategy, known for its transition from a business intelligence firm to a “Bitcoin development” company, has now raised a total of $1.3 billion in the past two weeks. The previous $800 million offering was initially planned as a $600 million raise but was later increased to $700 million, with an additional $100 million aggregate principal amount that can be exercised under specific terms. The proceeds from this offering allowed MicroStrategy to add 12,000 BTC to its Bitcoin treasury reserve. Currently, the company holds 205,000 BTC, valued at $15 billion, and has gained $8.1 billion or 117% on its investment.
MicroStrategy is now only 5,000 Bitcoin away from owning at least 1% of Bitcoin’s maximum supply. If the proposed $500 million offering is successful, it could buy approximately 6,850 Bitcoin at current prices. The senior convertible notes, which are debt securities convertible into equity-like stock, will accrue interest semi-annually and will mature on March 15, 2031, unless repurchased, redeemed, or converted earlier according to their terms. The notes can be converted into cash, shares of MicroStrategy’s class A common stock, or a combination of both.
MicroStrategy’s stock price (MSTR) continues to surge, increasing by 10.85% to $1,766 on March 13. Since February 6, the stock has risen by 254% and has been one of the top performers on the Nasdaq this year. This upward trend in the stock price has been fueled by Bitcoin’s recent rally, with the cryptocurrency’s value increasing by 46.1% over the past month to $73,050 at the time of publication, according to CoinGecko.