MicroStrategy has raised its convertible senior note sales offering to $875 million. The notes will be sold in a private offering to individuals reasonably considered qualified institutional investors.
The latest development comes after MicroStrategy revealed plans to launch a $700 million aggregate principal amount of convertible notes to qualified institutional investors.
The announcement disclosed the company’s plan to use funds from the convertible notes to redeem all $500 million outstanding principal amount of its senior secure notes while using the remaining amount to acquire more bitcoin and settle other general corporate duties.
MicroStrategy to Raise Up to $997.4M
The company noted that it has given the initial buyers of the notes the option to acquire up to an additional $135 million in total principal value of the notes within 13 days starting from the date the notes are first issued.
The business intelligence firm aims to raise up to $997.4 million if institutional investors purchase the additional notes. The initially planned $875 million will be reduced to $864.1 million after accounting for discounts, commissions, and related expenses for the initial buyers. As announced two days ago, the notes are set to mature on September 15, 2028, unless they are repurchased, converted, or redeemed earlier.
Noteholders can also request MicroStrategy to repurchase their notes on September 15, 2027, or if certain events occur that qualify as a fundamental change under the contract governing the notes. The repurchase will be at a price equal to 100% of the principal amount of the notes to be repurchased.
Over the years, MicroStrategy, led by its co-founder and executive chairman Michael Saylor, is known for acquiring substantial amounts of bitcoin (BTC) in its portfolio. Just recently, the company purchased approximately 18,300 BTC worth $1.11 billion. This further cements the firm’s position as the world’s largest corporate BTC holder. Its current Bitcoin stash totals 244,800 BTC.
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