MicroStrategy wraps up $1.01b convertible notes offering in 4 days

Less than a week after announcing the sale, MicroStrategy completed the issuance of $1.01 billion of convertible senior notes due in 2028.

MicroStrategy, one of the largest institutional Bitcoin (BTC) holders, announced in a press release on Friday, September 20, that it has completed a $1.01 billion offering of 0.625% convertible senior notes due 2028, less than a week after announcing the sale.

The notes were sold to institutional investors under Rule 144A of the Securities Act, with the net proceeds intended to be used for “additional Bitcoin acquisition and general corporate purposes.”

The Virginia-based company issued the notes at a 40% premium to the common stock price, setting an initial conversion price of approximately $183.19 per share. MicroStrategy exercised an option to issue an additional $135 million in notes, bringing the total amount raised to $1.01 billion.

MicroStrategy Raises Over $1 Billion to Buy More Bitcoin

The capital raised will be used to repurchase the company’s $500 million 6.125% senior secured notes due in 2028, initially collateralized by 69,080 BTC. The remaining funds will be directed toward additional crypto acquisitions and general corporate purposes.

The Notes are convertible into cash, shares of common stock, or a combination of both, at MicroStrategy’s discretion.

MicroStrategy, founded by Michael Saylor, continues to double down on its Bitcoin strategy despite market volatility. The company is one of the largest institutional holders of Bitcoin, holding approximately 244,800 BTC as of September, worth over $15.4 billion. The offer follows MicroStrategy’s recent purchase of 18,300 BTC for $1.11 billion, underscoring its commitment to expanding its crypto holdings.