MicroStrategy Completes $1B Convertible Notes Offering to Bolster Its Bitcoin (BTC) Acquisition Strategy

The US-based business intelligence solutions provider MicroStrategy has completed a $1.01 billion convertible notes offering to bolster its Bitcoin (BTC) purchase.

US-based business intelligence solutions provider MicroStrategy has completed a $1.01 billion convertible notes offering to bolster its Bitcoin (BTC) purchase.

As per a Form 8-K filed by the company with the U.S. Securities and Exchange Commission (SEC), MicroStrategy intends to use the proceeds from the offering to purchase approximately 7,420 Bitcoin at an average price of $61,750 per BTC.

The offering, which began on Sept. 13 and ended Sept. 19, was aimed at institutional investors and permitted conversion into MicroStrategy’s stock or cash.

A portion of the funds will be used by the company to redeem $500 million in senior secured notes. This redemption will release collateral, including a substantial amount of Bitcoin—around 69,080 BTC.

Moreover, the company will issue unsecured convertible senior notes with an annual interest rate of 0.625%, and semi-annual payments for these notes are scheduled for March 15 and Sept. 15 next year.

The notes will mature in 2027 unless they are converted, redeemed, or bought back earlier, according to the company’s official press release.

The business intelligence firm also noted that for every $1,000 principal, there will be 5.4589 shares of the company’s class A common stock at the initial conversion rate.

This conversion rate equates to about $183.19 per share, which is 40% higher than the stock’s price on Sept. 17.

After covering expenses and adding to its Bitcoin holdings, the remaining proceeds will be used by MicroStrategy for general corporate purposes, including enhancing the overall financial position of the organization.

On Sept. 13, the company disclosed that it had purchased about 18,300 Bitcoin between Aug. 6 and Sept. 12, for a total of nearly $1.11 billion. This acquisition was made at an average price of $60,408 per BTC, as stated in the company’s SEC filing.

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