MicroStrategy Upsizes Debt Offering to $700M for Bitcoin

MicroStrategy has increased its latest debt offering to $700 million, with proceeds earmarked for Bitcoin purchases and corporate purposes.
MicroStrategy Upsizes Debt Offering to $700M for Bitcoin
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Key Takeaways

  • MicroStrategy upsizes its latest stock sale to $700 million for Bitcoin purchases.
  • The new debt offering will bear an interest rate of 2.25% per annum and mature in 2032.
  • The company plans to use proceeds for acquiring additional Bitcoin and general corporate purposes.

American software firm MicroStrategy has announced the pricing of a new $700 million debt offering, which it will use to purchase more Bitcoin.

The notes, to be sold in a private offering to qualified institutional buyers, have been upsized from the previously announced $500 million.

According to the press release, the company will use a portion of the proceeds to add to its Bitcoin holdings, which currently stand at 214,400 BTC, valued at approximately $14 billion.

Note details

The unsecured senior notes will bear an interest rate of 2.25% per annum, payable semi-annually on June 15 and December 15 each year. They are set to mature on June 15, 2032, but can be repurchased, redeemed, or converted earlier under certain conditions. From June 20, 2029, MicroStrategy may redeem the notes for cash at a redemption price equal to 100% of the principal amount.

MicroStrategy estimates net proceeds of approximately $687.8 million after deducting initial purchasers’ discounts, commissions, and offering expenses. If the initial purchasers fully exercise their option to purchase additional notes, total proceeds could reach around $786 million. The company plans to use the funds to acquire more Bitcoin and for general corporate purposes.

Raise from $500M

The announcement follows MicroStrategy’s June 13 move to raise $500 million through a similar offering, underscoring the firm’s aggressive strategy to increase its Bitcoin holdings and strengthen its position in the market.

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