MicroStrategy to Raise $600 Million Through Convertible Notes for Additional Bitcoin Purchases
MicroStrategy, the largest corporate holder of Bitcoin (BTC), is set to raise $600 million as part of its strategy to acquire more Bitcoin. The business intelligence company confirmed this in a statement on March 4, revealing that the funds would be raised through the issuance of senior convertible notes. These senior convertible notes are debt securities that can later be converted into equity shares, offering priority over common stocks in case of bankruptcy or dissolution.
The company plans to use the net proceeds from the sale of these notes to purchase additional Bitcoin for general corporate purposes. It is also expected to grant initial purchasers of the notes the option to buy up to an additional $90 million of the notes’ principal amount. The notes are due on March 15, 2030, unless previously purchased, redeemed, or converted according to their terms into cash, MicroStrategy’s Class A common stock, or a combination thereof.
This move comes as MicroStrategy’s stock saw an increase of more than 2% in March, reaching $1,359. Meanwhile, according to CoinGecko, Bitcoin itself has risen 8.1% to $67,480 in the last 24 hours, approaching its all-time high of $69,000 reached on November 10, 2021. MicroStrategy has seen a 172% increase over the month.
Michael Saylor, the founder and CEO of MicroStrategy, has been the driving force behind the company’s Bitcoin investment strategy. According to BitcoinTreasuries, MicroStrategy currently holds approximately 193,000 Bitcoins, valued at $13 billion at current prices, with an average purchase price of $31,550. This represents a nearly $7 billion increase in value on their investment.
