MicroStrategy, a software company led by Michael Saylor, has expanded its convertible senior notes offering from $500 million to $525 million.
The company plans to use the proceeds to acquire more Bitcoin, following a strategy it has been pursuing since 2020, according to a recent press release.
MicroStrategy announced that it has priced its 0.875% convertible senior notes due 2031 in a private offering to qualified institutional buyers. The bonds are sold at an annual interest rate of 0.875% and 100% of the principal on a semi-annual basis.
After March 2028, the Company may repay in cash an amount equal to 100% of the principal plus accrued interest if certain conditions are met. Holders may require MicroStrategy to repurchase the Notes at 100% of principal plus interest on September 15, 2028, or upon the occurrence of certain events constituting a fundamental change.
The notes may be converted into cash, shares of MicroStrategy Class A common stock, or a combination of the two, at the Company’s discretion.
MicroStrategy estimates that the net proceeds from the offering, after fees and expenses, will be approximately $515 million.
MicroStrategy, led by founder and CEO Michael Saylor, has been aggressive with its Bitcoin accumulation strategy. The company currently holds over 200,000 Bitcoin worth $13 billion as of press time.
Saylor aims to position MicroStrategy as the world’s first “Bitcoin development company,” but details on the proposal are scant.
In the past, MicroStrategy has released alpha applications, such as a tool that allows businesses to reward employees using Bitcoin Lightning payments.
MicroStrategy’s plan, a publicly traded company using its balance sheet to acquire large amounts of bitcoin, demonstrates growing corporate interest in bitcoin as an emerging asset class and treasury asset that can hedge against declines and inflation.