MicroStrategy Wraps Up $1.01b Convertible Notes Offering In 4 Days

MicroStrategy has completed its $1.01 billion offering of convertible senior notes, set to mature in 2028, less than a week after announcing the sale.

MicroStrategy, one of the largest corporate Bitcoin (BTC) holders, said in a press release on Friday, Sept. 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 net proceeds intended to “acquire additional Bitcoin and for general corporate purposes.”

The Virginia-headquartered company issued the notes with a 40% premium over its common stock price, setting an initial conversion price of approximately $183.19 per share. MicroStrategy exercised an option allowing an additional $135 million in notes to be issued, bringing the total to $1.01 billion.

The raised capital will be used to redeem the company’s $500 million 6.125% senior secured notes due 2028, originally secured with 69,080 BTC. The remaining funds will be directed toward the purchase of additional crypto and for general corporate purposes.

The notes are convertible into either 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, owning around 244,800 BTC as of September, worth over $15.4 billion. This offering comes on the heels of MicroStrategy’s recent purchase of 18,300 BTC for $1.11 billion, underscoring its commitment to expanding its crypto holdings.