MicroStrategy Wraps Up $800M Convertible Note Offer, Buys More Bitcoin
Summary:
MicroStrategy, a major public Bitcoin holder, confirmed the completion of a $800 million convertible notes offering to acquire more Bitcoin. The net return from the offering was about $786 million. Using proceeds from this offering and excess cash, the company also reported purchasing an additional 11,931 Bitcoins for $786 million. As of June 20, MicroStrategy now owns a total of 226,331 Bitcoins, cumulatively costing around $8.33 billion.
MicroStrategy, one of the world's leading Bitcoin (BTC) holders, has successfully completed another round of offering convertible notes, aiming to purchase more BTC. The firm confirmed on June 20 that it finalized an earlier planned offering of 2.25% convertible senior notes that will reach due in 2032. The total principal sum of the notes offered touches the $800 million mark, inclusive of $100 million of notes issued through a purchase option. Details reveal that on June 17, the primary purchasers fully exercised the purchase agreement, with an auxiliary acquisition made on June 18. Michael Saylor was the source of this information.
After considering the initial purchasers' discounts and commissions, as well as estimated offering expenses to be paid by MicroStrategy, the net return from the note sales was around $786.0 million. The enterprise plans on utilizing the net proceeds from the note sales to purchase even more Bitcoin and for generic corporate uses.
In a parallel announcement, MicroStrategy stated that it has procured an additional 11,931 Bitcoin, amounting to $786 million, using revenues from convertible notes and surplus cash. The Bitcoins were purchased at a rate of $65,883 per BTC. As of June 20, MicroStrategy now possesses a total of 226,331 BTC, bought for approximately $8.33 billion at an average cost of $36,798 per BTC.
This news is still unfolding as further details continue to surface.
Published At
6/20/2024 3:30:04 PM
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