Nasdaq-listed software company MicroStrategy, known for holding a significant amount of bitcoin (BTC) in its treasury, has decided to increase its convertible note offering to $700 million from the original plan of $500 million. The company priced the offering to provide a 2.25% annual yield. These notes will be available to institutional investors in a private offering and will be unsecured, senior obligations that will mature in June 2032.
In addition to the increased offering, MicroStrategy has also granted initial buyers the option to purchase an additional $100 million of the notes within 13 days of the first issuance. The company aims to close the offering on Monday and plans to use the proceeds to acquire more bitcoin and for general corporate purposes.
MicroStrategy’s decision to boost its bitcoin investment comes as the company continues to hold 214,400 BTC, valued at around $14 billion, making it the largest publicly listed bitcoin holder. The company’s executive chairman, Michael Saylor, has been a strong advocate for bitcoin and started purchasing the digital asset for the company’s treasury back in 2020.
Despite a 7.5% decline in its shares the day before, MicroStrategy’s stock saw a nearly 2% increase in the early Friday session, trading slightly above $1,500. Brokerage firm Bernstein recently initiated coverage of the company, setting a $2,890 price target and giving it an outperform rating.
The move by MicroStrategy to increase its convertible note offering reflects its commitment to expanding its bitcoin holdings and its belief in the long-term potential of the cryptocurrency. As the company continues to bet big on bitcoin, it will be interesting to see how this investment strategy plays out in the coming years.
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