MicroStrategy Increases Convertible Note Sale by 40% to $700 Million
(Bloomberg) -- MicroStrategy Inc. increased its convertible note offering by 40% to $700 million, a day after the enterprise software maker announced plans to use the proceeds raised to buy more Bitcoin.
Most Read from Bloomberg
Wells Fargo Fires Over a Dozen for ‘Simulation of Keyboard Activity’
Southwest Plane Plunged Within 400 Feet of Ocean Near Hawaii
Bump Stock Ban Tossed Out by Supreme Court in Gun-Rights Win
Tesla Investors Get Behind Musk’s Fight for $56 Billion Pay Deal
Apple to ‘Pay’ OpenAI for ChatGPT Through Distribution, Not Cash
The largest publicly-traded corporate holder of Bitcoin said in a statement Friday that the notes maturing in 2032 will be priced to yield 2.25%. The firm also granted buyers the option of purchasing another $100 million of the senior securities.
Michael Saylor, the chairman and co-founder of MicroStrategy, started buying Bitcoin in 2020 as an inflation hedge and alternative to holding cash. MicroStrategy has amassed about $12.7 billion of Bitcoin, or more than 1% of all the cryptocurrency ever created. The original digital asset is up more than 600% since Saylor began buying.
Bitcoin has gained around 60% so far this year, driven in part by optimism over the launch of US exchange-traded funds investing directly into the cryptocurrency. MicroStrategy’s shares have risen about 135% during the same period.
(Adds share price history in the final paragraph.)
Most Read from Bloomberg Businessweek
Grieving Families Blame Panera’s Charged Lemonade for Leaving a Deadly Legacy
Israeli Scientists Are Shunned by Universities Over the Gaza War
The World’s Most Online Male Gymnast Prepares for the Paris Olympics
©2024 Bloomberg L.P.