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Michael Saylor's MicroStrategy Prices Upsized $525M Debt Offering to Buy More Bitcoin
This capital raise comes just days after a similarly structured $800 million offering, the proceeds of which the company used to purchased another 12,000 bitcoin.
Self-described Bitcoin development company MicroStrategy (MSTR) is set to add to its 205,000 bitcoin (BTC) stack after pricing a $525 million convertible debt offering.
The private placement was upsized from an originally planned $500 million and the purchasers were granted an option to buy up to an additional $78.5 million of the paper, meaning proceeds are likely to be in the $600 million area.
STORY CONTINUES BELOW
The convertible senior notes will have an interest rate of 0.875% per annum compared to 0.625% in a sale of $800 million of similar debt that took place just days ago. The conversion rate of the new notes will be equivalent to $2,327.31 per share, representing a premium of approximately 40% on MSTR's Thursday average price of $1662.20.
Read more: MicroStrategy Acquires 12,000 More BTC With Convertible Senior Notes Proceeds
MSTR shares dropped 5% on Thursday as bitcoin declined below $70,000. Shares are lower by 3.3% in premarket action alongside a continued fall in bitcoin, now trading at $67,700.
Read More: 'Bitcoin Is Going to Eat Gold': MicroStrategy’s Michael Saylor
Jamie Crawley
Jamie has been part of CoinDesk's news team since February 2021, focusing on breaking news, Bitcoin tech and protocols and crypto VC. He holds BTC, ETH and DOGE.
