MicroStrategy Raises Its Bitcoin-Focused Convertible Note Offering to $700 Million

Just a day after announcing a $500 million convertible senior note offering to buy more BTC, among other goals, Michael Saylor’s creation increased its goal to $700 million.

The company’s stock has been on a wild ride in 2024, perhaps due to the evolving Bitcoin landscape, but has soared in the triple digits since the start of the year.

$500 million is not enough

Since August 2020, when it announced its first BTC purchase, the NASDAQ-listed business intelligence software company has been using various types of funding to accumulate more cryptocurrency. One of their methods included borrowing by offering convertible notes.

CryptoPotato reported earlier this week that the company announced plans to offer a total of $500 million of convertible senior notes due 2032. However, the company raised its target the next day by a 40% up to $700 million.

The terms remain the same, meaning the rate is still 2.25% and the maturity year is 2032. They will be sold in a private offering to “persons reasonably believed to be qualified institutional buyers depending on Rule 144A of the Securities Act of 1933”.

As with those previous offerings, MicroStrategy said it intends to use the net proceeds to “acquire additional bitcoins and for general corporate purposes.”

SaylorTracker data shows that the company now owns 214,400 BTC (or more than 1% of the total bitcoin supply). Although the asset has retreated approximately eight thousand from its all-time high recorded in March of this year, MicroStrategy still has a massive unrealized profit of $6.6 billion.

MSTR price movements

Being a large holder of BTC and strongly linked to the cryptocurrency, MicroStrategy’s stock prices are highly affected by bitcoin movements. This means that by 2022 they had rallied quite violently, regained some ground in 2023, and by 2024 they had been in the midst of a bull run.

MSTR entered this year at just under $700, but fell in the first few weeks below $500. However, as BTC began to soar in March, the stock hit an all-time high of over $1,900.

The price movements of BTC and MSTR in the coming months have been identical. Although share prices have retreated from the peak in March (similar to bitcoin’s fall), they are still up 120% over the past year, closing Friday at $1,495.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!