MicroStrategy, under the leadership of Michael Saylor, has once again caught the attention of market participants today with its latest announcement. A day after announcing a $500 million convertible senior notes offering, the firm has upsized the offering amount to $700 million, a recent announcement showed.
Notably, this move signals MicroStrategy’s continued commitment to expanding its Bitcoin holdings and pursuing general corporate objectives.
Michael Saylor Increases Bets On Bitcoin With $700M Notes Offering
MicroStrategy’s latest announcement revealed an upsizing of its initial $500 million convertible senior notes offering to $700 million. The notes will mature in 2032 and offer a 2.25% interest rate, paid semi-annually starting December 15, 2024. Notably, the offering is scheduled to close on June 17, 2024, subject to customary conditions.
However, according to MicroStrategy, the notes will be sold privately to institutional buyers in accordance with Rule 144A under the Securities Act of 1933. In addition to the upsized offering, MicroStrategy, led by Michael Saylor, has granted initial purchasers an option to buy up to an additional $100 million in notes within 13 days of issuance.
Meanwhile, these unsecured senior obligations will be convertible into cash, MicroStrategy’s class A common stock, or a combination of both, at the company’s discretion. It’s worth noting that the conversion rate starts at 0.4894 shares per $1,000 of notes, equating to an initial conversion price of approximately $2,043.32 per share.
This price represents a 35% premium over the volume-weighted average price of $1,513.46 on June 13, 2024. However, adjustments to the conversion rate may occur based on certain events.
Meanwhile, Michael Saylor’s MicroStrategy has reiterated its stance to use the proceeds from the sale to buy more Bitcoin. Notably, both Michael Saylor and MicroStrategy have been active supporters of Bitcoin since 2020. Now, the firm said that the proceeds will be used to add more Bitcoin to its portfolio as well as for other business purposes.
✓ Share:
Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.