MicroStrategy Ups Debt Offering to $525 Million for Bitcoin Purchase

MicroStrategy has announced the pricing of a $525 million debt offering, which exceeds the initially planned $500 million. This comes on the heels of its recent major capital raise of $800 million, utilized to acquire an additional 12,000 Bitcoin. The intention behind this latest financial strategy is to further increase MicroStrategy’s substantial Bitcoin holdings, which currently exceed 205,000 BTC.

The offering attracted significant interest, leading to an expansion with an option for purchasers to acquire an additional $78.5 million, potentially pushing the total proceeds to around $600 million. The terms of the convertible senior notes include an annual interest rate of 0.875%, a slight increase from the 0.625% rate of the previous $800 million offering. Furthermore, the conversion rate for these new notes is set at $2,327.31 per share. This figure represents a 40% premium over MicroStrategy’s average share price last Thursday, which was $1662.20.