MicroStrategy, a prominent holder of Bitcoin (BTC), has successfully completed another offering of convertible notes to further increase its Bitcoin holdings. On March 18, former MicroStrategy CEO Michael Saylor announced that the company had finalized its previously announced offering of 0.875% convertible senior notes due 2031.
The offering consisted of notes totaling $603.75 million, which included $78.75 million of notes issued through an option to purchase. These notes were sold in a private offering to qualified institutional buyers in accordance with U.S. securities laws.
This offering comes shortly after MicroStrategy completed a $800 million convertible note offering on March 8, using the proceeds to acquire an additional 12,000 BTC for its Bitcoin treasury reserve. Similarly, the net proceeds from this recent convertible notes sale will be used by MicroStrategy to acquire more Bitcoin.
Following the announcement of the $604 million offering, Saylor revealed that MicroStrategy had purchased an additional 9,245 BTC using the proceeds from the convertible notes sale and excess cash. The average price of this purchase was $67,382 per BTC. With this new acquisition, MicroStrategy now holds a total of 214,246 BTC, which accounts for 1.02% of Bitcoin’s total supply yet to be mined. The company acquired its entire Bitcoin stash at an average price of $35,160 per BTC.
In a previous announcement on March 13, MicroStrategy revealed its plans for a second fundraiser, aiming to raise $600 million through a private senior convertible notes offering. These senior convertible notes are a form of debt security that can be converted into equity at a later date. MicroStrategy’s notes will mature on March 15, 2031, unless repurchased, redeemed, or converted earlier as stated in their terms. These notes hold a senior status, granting priority to holders in the event of bankruptcy or liquidation.
Saylor has emerged as a prominent Bitcoin advocate and has committed to holding Bitcoin for the long term. Last month, he stated that he has no intentions of selling Bitcoin, expressing his belief that Bitcoin is his exit strategy. This commitment is evident as MicroStrategy continues to accumulate BTC and strengthen its position as a major Bitcoin holder.
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