Key Takeaways
- MicroStrategy raised $1.01 billion for Bitcoin acquisitions.
- The company purchased 7,420 BTC at an average of $61,750 per Bitcoin.
- MicroStrategy now holds 244,800 Bitcoin worth $14.14 billion.
MicroStrategy has successfully raised $1.01 billion through a convertible note offering aimed at institutional investors. The company will use the proceeds to increase its Bitcoin holdings and redeem $500 million in senior secured notes, which include 69,080 BTC as collateral.
The offering, which closed on September 19, involved 0.625% convertible senior notes maturing in 2028. The funds have allowed MicroStrategy to acquire 7,420 BTC between September 13 and 19 for $458.2 million, at an average price of $61,750 per Bitcoin.
MicroStrategy plans to use the remaining $997.4 million, after fees, for further Bitcoin purchases and general corporate purposes. In addition, the company plans to redeem $500 million in senior secured notes due for redemption on September 26.
As of September 12, the firm held 244,800 Bitcoin worth approximately $14.14 billion. Its BTC yield reached 4.4% for the quarter and 17% for the year to date, according to co-founder Michael Saylor.
The convertible notes offer the option to convert into either cash or shares of MicroStrategy stock. The initial conversion rate stands at 5.4589 shares per $1,000 principal, translating to $183.19 per share, a 40% premium over the stock’s September 17 price.
