MicroStrategy Sells $604M in Notes for 9K Bitcoin Purchase

MicroStrategy recently completed another convertible note issuance raising $603.75 million.

The cryptocurrency holdings of MicroStrategy, which is one of the largest public investors in Bitcoin, have increased through the completion of another convertible note issuance.

On March 18, former MicroStrategy CEO Michael Saylor announced that MicroStrategy had completed its offering of 0.875% convertible senior notes due in 2031. We had previously reported on this particular offering.

Microstrategy Sells $604M In Notes

The offering sold a total of $603.75 million, which included the cumulative principal amount of the notes issued as a result of an option to purchase of $78.75 million.

Following the regulations governing securities in the United States, the statement states that the notes were sold in a private offering to qualified institutional buyers.

This transaction comes just a few days after MicroStrategy completed a convertible note offering worth $800 million on March 8. The proceeds from that offering were utilized to add 12,000 bitcoins to the company’s Bitcoin treasury reserve.

According to the release, MicroStrategy would utilize the net proceeds from selling convertible notes to acquire further Bitcoin, just as it did with the last issue.

MicroStrategy recently completed another convertible note issuance raising $603.75 million using the revenues from convertible notes and surplus cash, just a few minutes after he disclosed the new sale of $604 million.

The former CEO mentioned that the purchase was made at an average price of $67,382 per bitcoin. He also noted that MicroStrategy had a total of 214,246 bitcoins, which is equivalent to 1.02% of the total supply of bitcoin that is available to be mined.

The total amount of bitcoin that the company had was acquired at an average price of $35,160 per bitcoin.

On March 13, MicroStrategy announced that the company would conduct its second fundraising campaign, intending to raise $600 million through a private senior convertible note offering.

Senior convertible notes, a type of financial security, have the potential to convert into equity at a later time. Unless the company repurchases, redeems, or converts the notes sooner, they will reach maturity on March 15, 2031.

Since holders of the notes have priority in the case of bankruptcy or liquidation, the notes are considered “senior” to common shares. By now, Saylor has established himself as one of the most prominent Bitcoiners committed to holding Bitcoin.

A statement by the former CEO of MicroStrategy a month ago stated that he does not intend to sell Bitcoin.”I will continue to purchase tops for the rest of my life.

Saylor responded, “Bitcoin is the exit strategy,” in response to a question about whether or not his company would sell its hoard, estimated to be 190,000 BTC at the time.