MicroStrategy has completed an additional issuance of convertible notes for $603.75 million and is continuing its aggressive Bitcoin purchase.
One of the biggest public Bitcoin investors, MicroStrategy, has increased its Bitcoin holdings via the completion of another convertible note issuance.
Announcing the completion of MicroStrategy’s previously announced sale of 0.875% convertible senior notes due in 2031, former CEO Michael Saylor went to X on March 18.
Included in the $603.75 million total for the notes sold in the offering was an aggregate principal amount of $78.75 million in notes issued as a result of an option to buy.
Sales of the notes to eligible institutional purchasers occurred in a private offering in accordance with US securities rules, as stated in the statement.
The offering occurs days after MicroStrategy concluded a convertible note offering for $800 million on March 8; the proceeds were applied to the expansion of its Bitcoin treasury reserve by 12,000 BTC.
According to the release, MicroStrategy will once again buy more Bitcoin using the net proceeds from the convertible note sale, just like in the last offering.
Using the funds from convertible notes and surplus cash, Saylor acquired an extra 9,245 BTC minutes after announcing the new $604 million sale.
As the former CEO pointed out, the average purchase price was $67,382 per BTC, and MicroStrategy had 214,246 BTC, or 1.02% of the entire Bitcoin supply that could be mined.
The company bought all of its Bitcoin at an average price of $35,160 per coin. The second fundraising for MicroStrategy, a private senior convertible notes offering aiming for $600 million, was launched on March 13th, as previously stated.
Convertible senior convertible notes allow the holder to turn their debt into equity at a later point in time. Unless sooner repurchased, redeemed, or converted in accordance with their terms, MicroStrategy’s notes will maturity on March 15, 2031.
In the case of liquidation or insolvency, holders of the notes take precedence over those of common shares, making them “senior” to common stock.
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