Key Points:
- Michael Saylor’s MicroStrategy raised approximately $1.01 billion through the offering of 0.625% convertible senior notes due 2028.
- The notes have a conversion rate of 5.4589 shares per $1,000 principal, with a conversion price set at $183.19 per share.
Michael Saylor’s MicroStrategy closed its offering of the 0.625% convertible senior notes due 2028 with a deal size of about $1.01 billion.
Read more: MicroStrategy Bitcoin Investment Will Be Boosted With $2 Billion Share Offering Plan
Michael Saylor’s MicroStrategy Raises $1.01 Billion Through Convertible Notes Offering
These unsecured senior notes were offered only to qualified institutional buyers, carrying an annual interest rate of 0.625% payable semi-annually and maturity dated September 15, 2028.
The conversion rate for the notes upon issuance represents 5.4589 shares of MicroStrategy’s Class A common stock per $1,000 principal amount, which equates to an initial conversion price of $183.19 per share.
The company intends to use approximately $997.4 million of the net proceeds to redeem its existing $500 million in 6.125% Senior Secured Notes and to acquire additional Bitcoins. In connection therewith, this will release approximately 69,080 Bitcoins that are currently securing such senior notes.
The holders of the notes have the right to require MicroStrategy to repurchase the notes on September 15, 2027, or upon the occurrence of a fundamental change, at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus any accrued and unpaid interest.
Corporate Bitcoin Holdings Keep Flying High
Under the leadership of Michael Saylor, since it began buying Bitcoin in 2020, MicroStrategy has been the largest corporate holder of the cryptocurrency and closed 2023 with 190,000 Bitcoins.
At the close of trading on September 19, 2024, the number of Bitcoins held by the company rose to approximately 244,800 valued at roughly $9.45 billion acquired at an average price of $38,585 per Bitcoin. This year, shares of Michael Saylor’s MicroStrategy have gained more than double in value, while Bitcoin has jumped more than 35% on a year-to-date basis.
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