Michael Saylor-led software company MicroStrategy has increased its planned offering of senior convertible notes from $500 million to $525 million.
The company intends to use the profits to acquire more Bitcoin, per its recent report. Press releasefollowing a strategy that it has been pursuing since 2020.
MicroStrategy announced that it has priced 0.875% convertible senior notes due 2031 in a private offering to qualified institutional buyers. The notes will be sold at 100% of the principal amount with an annual interest rate of 0.875%, payable semi-annually.
After March 2028, the Company may repay the Notes for cash at 100% of the principal plus accrued interest if certain conditions are met. Holders may require MicroStrategy to repurchase the Notes at 100% of the principal amount plus interest on September 15, 2028, or upon certain events constituting a fundamental change.
The Notes will be convertible into cash, shares of MicroStrategy's Class A common stock, or a combination of both at the Company's discretion.
MicroStrategy estimates that the net proceeds from the offering will be approximately $515 million after fees and expenses.
Led by founder and CEO Michael Saylor, MicroStrategy has been aggressive in its bitcoin accumulation strategy. The company now holds over 200,000 bitcoins worth over $13 billion at the time of publication.
Saylor has said he wants to position MicroStrategy as the world's first “Bitcoin development company,” although details on the proposal are scarce.
In the past, MicroStrategy has released alpha applications, such as a tool for businesses to reward employees using Bitcoin lightning payments.
As a publicly traded company using its balance sheet to acquire Bitcoin at scale, MicroStrategy's plans illustrate growing corporate interest in Bitcoin as an emerging asset class and treasury asset, capable of protecting against depreciation and inflation.