MicroStrategy Incorporated (Nasdaq: MSTR) announced its plans to offer $600 million aggregate principal amount of convertible senior notes due 2030 in a private offering to qualified institutional buyers. The offer is subject to market conditions and other factors, with the possibility of increasing it by an additional $90 million.
JUST IN: MicroStrategy to raise $600 million to buy more #Bitcoin pic.twitter.com/oCKnn8KDpy
– Bitcoin Magazine (@BitcoinMagazine) March 4, 2024
These unsecured senior obligations of MicroStrategy will bear interest payable semi-annually and mature on March 15, 2030. The Company intends to give the initial purchasers the option to purchase additional notes within a 13-day period.
MicroStrategy plans to use the net proceeds from the offering “to acquire additional bitcoin and for general corporate purposes.” The offering will be made to qualified institutional buyers in reliance on Rule 144A under the Securities Exchange Act of 1933.
As the “world's first Bitcoin development company,” MicroStrategy is dedicated to supporting the growth and development of the Bitcoin network. The company uses its cash flow and proceeds from equity and debt financing to accumulate bitcoin, which serves as a primary treasury reserve asset.
The offering will help strengthen MicroStrategy's position in the Bitcoin market and advance its mission of promoting Bitcoin adoption and innovation. However, the offering is subject to uncertainties related to market conditions and completion terms, as described in MicroStrategy's recent filings with the Securities and Exchange Commission.
MicroStrategy stock has outperformed Bitcoin year-to-date in 2024, rising 94.70% at the time of writing, compared to a 58.22% rise for BTC stock.
