MicroStrategy Raises $875M From Convertible Senior Notes Sale to Buy More Bitcoin (BTC)

MicroStrategy Inc. (NASDAQ: MSTR), a major long-term Bitcoin (BTC) investor, has announced the pricing of its convertible senior notes due in 2028.

Tech unicorn MicroStrategy Inc. (NASDAQ: MSTR), a renowned long-term Bitcoin (BTC) investor, has announced the pricing of its convertible senior notes, set to mature in 2028. Initially, the company announced plans to raise $700 million, but the target has since been increased to $875 million, with an additional $135 million for the initial purchasers.

Closing the Offering, Gearing up for Bitcoin Acquisition

The offering is expected to close by Thursday, September 19, 2024. MicroStrategy estimates that the net proceeds from the sale of the notes will be around $864.1 million, or about $997.4 million if the initial buyers fully participate in the upsize option.

“MicroStrategy intends to use the net proceeds from the offering to redeem all $500.0 million outstanding aggregate principal amount of MicroStrategy’s 6.125 percent Senior Secured Notes due 2028 and to use any balance of the net proceeds to acquire additional bitcoin and for general corporate purposes,” the company noted.

Earlier this week, MicroStrategy announced a redemption notice to the Convertible Senior Notes for about $523.8 million.

Furthermore, the company said that it had acquired 18,300 BTCs, for $1.11 billion, between August 6 and September 12. As a result, MicroStrategy now holds a total of 244.8k Bitcoins, valued at over $14 billion.

MicroStrategy’s Impact on Bitcoin

As one of the major long-term Bitcoin investors, MicroStrategy’s actions have instilled confidence in the digital asset industry. Notably, the central banks of Norway and Switzerland hold 1.123 million and 466k MSTR shares.

Amid the anticipated economic shift, which will be triggered by the expected Fed’s rate cut, Bitcoin price will break out in a similar manner to Gold.

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