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MicroStrategy raises $800M via convertible notes to expand Bitcoin holdings, acquiring 11,931 BTC at $36,798 each. Convertible notes mature in 2032 with a 2.25% interest rate, offering conversion to cash or stock at $2,043.32 a share. The financing move aligns with MicroStrategy’s strategy to boost liquidity and strengthen its Bitcoin treasury. MicroStrategy closed an $800 million offering of convertible senior notes to qualified institutional buyers. The notes, maturing in 2032, carry a 2.25% annual interest rate and are payable semi-annually starting December 15, 2024.  MicroStrategy exercised an option to issue an additional $100 million in notes, which were fully purchased by initial buyers. This transaction aligns with the company’s strategy to strengthen its financial position and fund further investments. In the most recent update, Michael Saylor announced that MicroStrategy acquired an additional 11,931 bitcoins for approximately $786.0 million. The company used proceeds from the convertible notes and existing cash, paying an average of $65,883 per bitcoin. This purchase brings MicroStrategy’s total bitcoin holdings to 226,331, acquired for about $8.33 billion at an average of $36,798 per bitcoin. The net proceeds of approximately $786 million will primarily be used to increase MicroStrategy’s bitcoin reserves and for general corporate purposes. MicroStrategy has acquired an additional 11,931 BTC for ~$786.0M using proceeds from convertible notes & excess cash for ~$65,883 per #bitcoin. As of 6/20/24, $MSTR hodls 226,331 $BTC acquired for ~$8.33B at average price of $36,798 per bitcoin.https://t.co/jE9dGqqnON — Michael Saylor⚡️ (@saylor) June 20, 2024 The convertible notes offer investors to convert them into cash, MicroStrategy’s class A common stock, or a combination of both. The initial conversion rate is 0.4894 shares per $1,000 of notes, equivalent to an initial conversion price of about $2,043.32 per share. This price represents a premium of approximately 35% over the average trading price of MicroStrategy’s…

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Filed under: News - @ June 21, 2024 7:28 am