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MicroStrategy Has Raised $46.6M Through Share Sales Since September

The company also suggested further sale proceeds may be used to pay down debt.

Updated May 9, 2023, 4:08 a.m. Published Feb 17, 2023, 2:13 p.m.

MicroStrategy Executive Chair Michael Saylor (Joe Raedle/Getty Images)

Michael Saylor's MicroStrategy (MSTR) disclosed that it's raised $46.6 million via share sales since it entered an agreement with underwriter Cowen and Company in September for the sale of up to $500 million in common stock.

In a Securities and Exchange Commission filing on Friday morning, the company also updated the "use of proceeds" statement, saying money raised may also go towards repayment of debt, including its term loan with Silvergate Bank (SI). That loan – for $205 million and taken out in March 2022 – is a floating rate, and has thus gotten more expensive as the U.S. Federal Reserve has hiked short-term interest rates.

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The Silvergate loan matures in March 2025 and does have a prepayment penalty, but that penalty in March 2023 drops by half to just 0.25% of the principal balance being repaid.

MicroStrategy has previously mostly used proceeds from share sales to add to its bitcoin (BTC) holdings.

MicroStrategy Silvergate Michael Saylor Loan

Stephen Alpher

Stephen is CoinDesk's managing editor for Markets. He previously served as managing editor at Seeking Alpha. A native of suburban Washington, D.C., Stephen went to the University of Pennsylvania's Wharton School, majoring in finance. He holds BTC above CoinDesk’s disclosure threshold of $1,000.