MicroStrategy Boosts Bitcoin Investment with $700 Million Convertible Note Offering

MicroStrategy, renowned for its bold Bitcoin investment approach, has decided to expand its convertible note offering to $700 million, a significant increase from the initially proposed $600 million. This strategic move coincides with the buoyant cryptocurrency market, marked by Bitcoin briefly reaching new all-time highs.

Scheduled for maturity in 2030, the notes will carry a modest interest rate of 0.625% per annum. They will possess the convertibility feature, allowing holders to exchange them for MicroStrategy shares at a rate of $1,497.68 per share, reflecting a 21% premium over the prevailing market price.

Notably, holders of these notes will retain the prerogative to prompt MicroStrategy to repurchase them under specific circumstances. Conversely, MicroStrategy reserves the right to redeem the notes for cash post-March 2027, provided certain stock price conditions are met.

The anticipated net proceeds from this offering stand at $684.3 million, with a potential increase to $782.0 million if additional options are exercised. These funds are earmarked for the acquisition of additional Bitcoin assets or for general corporate expenditures.

Presently, MicroStrategy boasts a Bitcoin reserve of 193,000 BTC, acquired at an average cost of $31,544, amounting to a cumulative investment of $12.9 billion and yielding an impressive return of 112%. This investment strategy has also catalyzed a remarkable 429.2% surge in MicroStrategy's stock valuation.