MicroStrategy Raises $1.01B for Massive Bitcoin Purchase
MicroStrategy raised $1.01 billion through convertible senior notes to fund Bitcoin acquisitions, continuing its aggressive crypto strategy.
Key points:
- $1.01B raised: MicroStrategy completed a convertible note offering of $1.01 billion.
- Bitcoin focus: Proceeds will fund Bitcoin purchases and debt repayment.
- Debt repayment: $500M of secured notes will be redeemed.
- Note details: 0.625% interest, maturing in 2028.
- $BTC holdings: The company holds 244,800 $BTC as of September 2024.
MicroStrategyās Bold Bitcoin Strategy:
MicroStrategy, led by Michael Saylor, completed a $1.01 billion convertible note offering. The company continues to aggressively purchase $BTC, planning to use most of the funds for acquisitions.
It will also redeem $500M in secured notes, which will free 69,080 $BTC as collateral.
The offering, finalized on September 19, 2024, features convertible senior notes with a 0.625% interest rate, payable semi-annually. These notes mature in 2028 unless investors convert them into cash or MicroStrategy stock.
Investors can convert the notes at a rate of 5.4589 shares per $1,000, which reflects a 40% premium over the companyās stock price at the time.
MicroStrategyās appetite for Bitcoin keeps growing. Between August 6 and September 12, the firm bought 18,300 $BTC at an average price of $60,408 per coin.
Read more: MicroStrategy Buys 18,300 $BTC, Boosts Holdings to 244,800
As of September 2024, it holds $244,800 $BTC, and the funds from this offering will likely fuel even more purchases.
Saylor’s strategy has paid off, with the firm reporting a 4.4% Bitcoin yield for the quarter and a 17% yield for the yearā.
