Michael Saylor-led software company MicroStrategy has expanded its planned convertible securities offering from $500 million to $525 million.
The company intends to use the proceeds to acquire more bitcoin, according to its latest press release, following the strategy it has followed since 2020.
MicroStrategy announced that it has priced its 0.875% convertible senior notes due 2031 in a special offering to qualified institutional buyers. The bonds will be sold at 100% of the principal amount and at an annual interest rate of 0.875%, payable semi-annually.
After March 2028, the company can redeem the notes for cash at 100% of the principal amount plus accrued interest if certain conditions are met. Holders can request that MicroStrategy repurchase the notes at 100% of the principal amount plus interest on September 15, 2028, or upon certain events that constitute a fundamental change.
The Notes will be convertible into cash, shares of MicroStrategy's common stock, or a combination of both at the Company's discretion.
MicroStrategy estimates that the net proceeds from the offering will be approximately $515 million after fees and expenses.
Led by founder and CEO Michael Saylor, MicroStrategy has been aggressive in its Bitcoin accumulation strategy. The company now owns more than 200,000 bitcoins worth more than $13 billion at press time.
Saylor said he aims to position MicroStrategy as the world's first “bitcoin development company,” though details about the proposal were scant.
In the past, MicroStrategy has released alpha applications, such as a tool to allow companies to reward employees with Bitcoin Lightning payments.
As a publicly traded company that uses its balance sheet to acquire Bitcoin extensively, MicroStrategy's plans demonstrate growing corporate interest in Bitcoin as an emerging asset class and treasury asset, one that can hedge against decline and inflation.
