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MicroStrategy to raise $600 million to buy more Bitcoin

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MicroStrategy Incorporated (Nasdaq: MSTR) announced its intention to offer $600 million aggregate principal amount of convertible senior notes due 2030 in a private offering to qualified institutional buyers. The offer is subject to market conditions and other factors, with the potential to increase by an additional $90 million.

These MicroStrategy senior unsecured notes will bear interest payable semi-annually and mature on March 15, 2030. The Company intends to grant the initial purchasers an option to purchase additional notes within 13 days.

MicroStrategy plans to use the net proceeds from the offering to “acquire additional bitcoins and for general corporate purposes.” The offering will be made to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.

As the “world’s leading Bitcoin development company,” MicroStrategy is dedicated to supporting the growth and development of the Bitcoin network. The company uses its cash flow and proceeds from its equity and debt financings to accumulate Bitcoin, which serves as its primary cash reserve asset.

This offering will help strengthen MicroStrategy’s position in the Bitcoin market and further its mission to advance Bitcoin adoption and innovation. However, the offering is subject to uncertainties related to market conditions and closing conditions, as discussed in MicroStrategy’s recent filings with the Securities and Exchange Commission.

MicroStrategy stock has outperformed Bitcoin since the start of 2024, up 94.70% at the time of writing, compared to BTC’s 58.22% rise.



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