MicroStrategy Increases Convertible Note Offering by 40% to $700M in Bitcoin Splurge

The company's shares rose nearly 2% in the early Friday session following yesterday's tumble.

AccessTimeIconJun 14, 2024 at 2:38 p.m. UTC
Updated Jun 14, 2024 at 2:41 p.m. UTC
  • MicroStrategy raised its latest convertible note offering by $200 million from an original plan of $500 million.
  • It also offered initial buyers an option to purchase an additional $100 million of the notes.
  • Broker Bernstein set a $2,890 price target for the company's shares.
  • Bitcoin’s Price Is Way Up. And $48 Trillion in Wealth Just Got Access
    45:11
    Bitcoin’s Price Is Way Up. And $48 Trillion in Wealth Just Got Access
  • Bitcoin Ecosystem Developments in 2023 as BTC Hits Fresh 2023 High
    08:42
    Bitcoin Ecosystem Developments in 2023 as BTC Hits Fresh 2023 High
  • Bitcoin Extends Rally as $1B in BTC Withdrawals Suggests Bullish Mood
    01:10
    Bitcoin Extends Rally as $1B in BTC Withdrawals Suggests Bullish Mood
  • Why Financial Advisors Are So Excited About a Spot Bitcoin ETF
    1:02:43
    Why Financial Advisors Are So Excited About a Spot Bitcoin ETF
  • Nasdaq-listed software firm MicroStrategy (MSTR), the largest corporate holder of bitcoin (BTC), increased its convertible note offering by 40% to $700 million and priced it to offer a 2.25% annual yield.

    The notes, available to institutional investors in a private offering, will be unsecured, senior obligations and mature in June 2032, the company said in a Friday press release. The Tysons Corner, Virginia-based company also granted initial buyers an option to purchase an additional $100 million of notes within 13 days of the first issuance. The company expects to close the offering on Monday. The proceedings of the issuance will be used to acquire more bitcoin and for general corporate affairs.

    The company's shares added nearly 2% in the early Friday session, changing hands at slightly above $1,500 following yesterday's 7.5% decline. Earlier today, brokerage firm Bernstein initiated coverage of Microstrategy, setting a $2,890 price target and assigning an outperform rating.

    MicroStrategy started buying the oldest and largest crypto asset in 2020 for its treasury. Now, it holds 214,400 BTC worth some $14 billion, making the company the biggest publicly listed bitcoin holder. The company's executive chairman, Michael Saylor, is a vocal supporter of bitcoin.

    Edited by Sheldon Reback.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Krisztian  Sandor

    Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.