MicroStrategy – the Michael Saylor led software company – has raised its convertible senior notes offer from $500,000,000 to $525,000,000.
According to their latest announcement, the company plans to purchase more Bitcoin. press releaseFollowing a strategic approach it has followed since 2020.
MicroStrategy has announced that it priced its 0.875% senior convertible notes due in 2031 as a private offer to institutional buyers. The notes are sold at 100 percent of principal with an interest rate of 0.875% per year, payable every two years.
If certain conditions are met, MicroStrategy can redeem notes at 100% principal plus interest after March 2028. MicroStrategy will repurchase notes on September 15th, 2028 at 100% principal plus accrued interests if the conditions are met.
Notes can be exchanged for cash, MicroStrategy Class A Common Stock, or any combination thereof, at the company’s discretion.
MicroStrategy expects the gross proceeds from the offering to be around $515 Million after expenses and fees.
MicroStrategy, led by its founder and CEO Michael Saylor has taken a very aggressive approach to accumulating bitcoins. At press time, the company held more than 200,000 Bitcoins valued at over $13 billion.
Saylor says he hopes to establish MicroStrategy in the global market as the “first” strategic management software company. “Bitcoin development company,” Details on the plan are scarce.
MicroStrategy previously released alpha versions of applications. For example, a tool to allow businesses and employees to be rewarded using Bitcoin lightning payments.
MicroStrategy, a publicly-traded company, is using its balance sheets to buy bitcoin in large quantities. This shows the growing interest of corporations for Bitcoin, as a treasury and emerging asset. It can be used as a hedge against inflation and debasement.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
Source: bitcoinmagazine.com