Nasdaq-listed software company MicroStrategy, known for being the largest corporate holder of bitcoin (BTC), has decided to increase its convertible note offering by $200 million, bringing the total to $700 million. The company initially planned for a $500 million offering but raised it due to high demand. In addition, they have given the initial buyers the opportunity to purchase an extra $100 million worth of notes.
The notes will be available to institutional investors through a private offering and will offer a 2.25% annual yield. These notes will be unsecured, senior obligations and are set to mature in June 2032. MicroStrategy has stated that the funds raised from this offering will be used to acquire more bitcoin and for general corporate purposes. The company expects to close the offering on Monday.
MicroStrategy’s shares saw a nearly 2% increase in the early Friday session, trading at slightly above $1,500 after experiencing a 7.5% decline the previous day. Brokerage firm Bernstein has initiated coverage of MicroStrategy and set a price target of $2,890 per share, along with an outperform rating.
Since 2020, MicroStrategy has been actively purchasing bitcoin for its treasury and currently holds 214,400 BTC, valued at around $14 billion. This makes them the largest publicly listed holder of bitcoin. The company’s executive chairman, Michael Saylor, is a strong advocate for bitcoin and has been vocal about his support for the cryptocurrency.
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Overall, MicroStrategy’s decision to increase its convertible note offering to $700 million demonstrates their continued commitment to investing in bitcoin and further solidifies their position as a major player in the cryptocurrency market. Investors and industry experts will be closely watching how this move impacts the company’s future growth and the broader cryptocurrency landscape.