MicroStrategy Plans To Raise $600 Million to Purchase Additional Bitcoin

Deniz Saat

Mar 05, 2024 - 1 min read

MicroStrategy (MSTR) has revealed its intention to issue $600 million in convertible senior notes due in 2030 through a private offering aimed at qualified institutional investors.

This move is contingent upon prevailing market conditions and various other considerations. Additionally, there is a possibility of an expansion by up to an additional $90 million.

https://twitter.com/saylor/status/1764758591985058146

MicroStrategy's senior, unsecured debts will accrue interest twice a year and are set to be repaid by March 15th, 2030.

Furthermore, the company will provide early investors the opportunity to acquire additional notes during a 13-day timeframe.

MicroStrategy intends to allocate the net proceeds from this sale towards purchasing more "Bitcoin and for general corporate purposes."

This sale is targeted at qualified institutional buyers, following the guidelines of Rule 144A under the Securities Act of 1933.

MicroStrategy focuses on the Bitcoin network's growth and uses its cash inflows and the proceeds from equity and debt financings to buy more Bitcoin, which is the primary asset in its treasury reserves.

The proposed offering aligns with its goal of promoting Bitcoin adoption and driving innovation.