March 27, 2024
Bitcoin News

MicroStrategy Continues Bitcoin Buying Spree with $500 Million Offering

MicroStrategy, led by executive chairman Michael Saylor, has announced a new proposed issue of $500 million in convertible notes, continuing its aggressive pursuit of Bitcoin acquisitions. The purpose of this fundraising effort is clear: “to acquire additional Bitcoin.”

On March 13, the company, which is notable for its shift from a business intelligence organization to a key player in the Bitcoin investment space, announced its most recent fundraising drive. This move comes after a series of substantial financial maneuvers, including a recently completed $800 million senior convertible note issue earlier this week.

MicroStrategy’s Financial Maneuvers Drive Bitcoin Treasury Expansion

The initial raise was intended to be $600 million but was increased to $700 million, with an additional $100 million aggregate principal amount subject to specific terms. These funds were promptly utilized to bolster MicroStrategy’s Bitcoin treasury reserve by acquiring another 12,000 BTC.

Currently, MicroStrategy holds a substantial 205,000 BTC in its reserves, valued at $15 billion, marking an impressive $8.1 billion increase, representing a 117% return on investment. Notably, the company is approaching the milestone of owning at least 1% of Bitcoin’s theoretical maximum supply, with only 5,000 Bitcoin remaining.

The newly proposed senior convertible notes will mature on March 15, 2031, unless previously repurchased, redeemed, or converted in line with their conditions. These debt securities provide flexibility in that they can be converted into cash, MicroStrategy’s class A common stock, or a combination of the two.

Stock Soars as Company Rides Bitcoin Rally

MicroStrategy’s relentless pursuit of Bitcoin has not only increased its digital asset reserves but has also had a significant impact on its stock price. MSTR’s shares rose 10.85% to $1,766 on March 13, continuing its amazing advance of 254% since February 6. This gain in stock value is directly tied to Bitcoin’s current rally, which has witnessed a 46.1% increase in the last month, hitting $73,050 at the time of publication.

Change in share price in MicroStrategy over the last six months. Source: Google Finance

Image by vectorpocket on Freepik

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