MicroStrategy Has Raised $46.6M Through Share Sales Since September
The company also suggested further sale proceeds may be used to pay down debt.
Feb 17, 2023 at 2:13 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/AOQZK4UAYJHDBBN5P2C3T33R3Q.jpg)
MicroStrategy Executive Chair Michael Saylor (Joe Raedle/Getty Images)
Michael Saylor's MicroStrategy (MSTR) disclosed that it's raised $46.6 million via share sales since it entered an agreement with underwriter Cowen and Company in September for the sale of up to $500 million in common stock.
In a Securities and Exchange Commission filing on Friday morning, the company also updated the "use of proceeds" statement, saying money raised may also go towards repayment of debt, including its term loan with Silvergate Bank (SI). That loan – for $205 million and taken out in March 2022 – is a floating rate, and has thus gotten more expensive as the U.S. Federal Reserve has hiked short-term interest rates.
The Silvergate loan matures in March 2025 and does have a prepayment penalty, but that penalty in March 2023 drops by half to just 0.25% of the principal balance being repaid.
MicroStrategy has previously mostly used proceeds from share sales to add to its bitcoin (BTC) holdings.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/s3.amazonaws.com/arc-authors/coindesk/86c43cde-6640-4a7c-98af-5e25273f0e17.png)
Stephen Alpher is CoinDesk's managing editor for Markets. He holds BTC above CoinDesk’s disclosure threshold of $1,000.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.