MicroStrategy, under the leadership of Michael Saylor, once again attracted the attention of market players today with its latest announcement. A day after announcing a $500 million senior note bond offering, the firm has raised the total offering to $700 million, based on the latest announcement.
This move demonstrates MicroStrategy's continued commitment to growing its Bitcoin holdings and pursuing general corporate objectives.
MicroStrategy's latest announcement revealed an increase in its $500 million convertible senior note offering to $700 million. The notes will mature in 2032 and offer an interest rate of 2.25%, payable biannually beginning December 15, 2024. The offering is scheduled to close on June 17, 2024, subject to customary conditions.
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 increased offering, MicroStrategy, led by Michael Saylor, has given initial buyers the option to purchase up to an additional $100 million in notes over a 13 days after publication.
Meanwhile, these senior unsecured obligations are convertible into cash, MicroStrategy class A common stock, or a combination of the two, at the company's discretion. It should be noted that the conversion rate starts at 0.4894 shares per $1,000 note, equivalent 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 conversion rates may occur based on certain events.
Meanwhile, MicroStrategy led by Michael Saylor has confirmed its position to use the proceeds of the sale to buy more Bitcoin. Michael Saylor and MicroStrategy have been active supporters of Bitcoin since 2020. Now, the firm states that the proceeds from this sale will be used to add more Bitcoin to its portfolio as well as for other business purposes.