CEO-led MicroStrategy Michael Saylorhas increased the size of its planned stock sale to raise additional funds for Bitcoin purchases. The company is now Raised $700 million,from The previously announced $500 million.
BREAKING: MicroStrategy Increases Acquisition Funding to $700 Million #Bitcoin pic.twitter.com/B2I2uk98Ie
— Bitcoin Magazine (@BitcoinMagazine) June 14, 2024
MicroStrategy first announced plans on Thursday to raise $500 million through the sale of convertible senior notes to qualified institutional investors, with the proceeds to be used primarily to buy more bitcoin for the company’s corporate treasury, which already has more than $100 billion in it. 214,400 BTC, worth $15 billion.
The software analytics company later increased the offering price to $700 million on Friday. The company said the offering is expected to close on June 17.
MicroStrategy Under Saylor’s direction, the company has been aggressively accumulating Bitcoin since 2020, taking advantage of market volatility and buying Bitcoin with debt. The company said it believes Bitcoin will continue to rise in the long term.
Selling convertible senior notes gives MicroStrategy flexibility: The bonds will pay interest and mature in 2032, but bondholders can convert them into MicroStrategy stock prior to maturity.
This structure allows investors to benefit from Bitcoin price appreciation through the equity conversion option, while noteholders are protected from downside risk through their senior unsecured status.
MicroStrategy said it may use any proceeds not used to purchase bitcoin for general corporate purposes, but the company’s intention is clearly to grow its bitcoin holdings while prices remain low.
The additional capital injection signals MicroStrategy’s continued confidence in Bitcoin as a primary treasury reserve asset, with Saylor doubling down on his investment by acquiring more of the coin amid the current market turmoil.
