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MicroStrategy Increases Convertible Senior Note Sales to $875M

Only two days after disclosing plans to raise $700 million, MicroStrategy increased its offering to an additional $175 million.

Avatar image of Mishael Nwani Mishael Nwani•September 18, 2024
Michael Saylor

Publicly traded business intelligence firm MicroStrategy has increased its convertible senior note sales offering to $875 million. The latest moves come only two days after the company announced its plan to raise $700 million for loan repayment and Bitcoin acquisition.

MicroStrategy to Raise Up to $997.4M

The business intelligence company noted in a press release that initial buyers of its convertible senior notes could choose to buy up to an additional $135 million worth of the notes within 13 days. Only investors believed to be institutional buyers are eligible to partake in the offering, which is expected to close on September 19.

MicroStrategy aims to raise up to $997.4 million if these institutional investors acquire the additional notes. The initially stated $875 million will drop to $864.1 million due to initial buyers’ discounts, commissions, and expenses. As the firm announced two days ago, the notes will mature on September 15, 2028, unless repurchased, converted, or redeemed.

Proceeds from the sale will be funneled into the redemption of $500 million “outstanding aggregate principal amount of MicroStrategy’s 6.125% Senior Secured Notes due 2028.” The remaining funds will be used to acquire more BTC, a practice the company has upheld for over four years.

Under the leadership of its co-founder and executive chairman, Michael Saylor, the business intelligence firm has embraced the custom of frequently acquiring since August 2020. Today, the company’s BTC stash sits at 244,800 BTC, worth over $14 billion based on the current market price.

BTC Trades At $60K

Earlier this week, BTC struggled between the $57,000 and $58,000 price mark. Yesterday, the market was consumed by bullish trends, taking Bitcoin’s price above $61,000.

The sudden surge was primarily fueled by anticipation of the incoming interest rate cut by the Federal Reserve. The announcement, expected later today, will likely play a role in determining whether BTC will see more price upticks or if a market drop will occur.

At press time, the leading cryptocurrency traded at $60,000.

Mishael Nwani

Mishael Nwani is an avid crypto enthusiast with nearly four years of experience in the industry. Since 2022, he has covered topics across cryptocurrencies, NFTs, artificial intelligence, and financial markets.