MicroStrategy and its executive chairman, Michael Saylor, are maintaining their aggressive approach to Bitcoin (BTC) acquisition. The company has announced a new proposed offering of $500 million in convertible notes, with the intention of using the proceeds to acquire additional Bitcoin.
The business intelligence firm, which has shifted its focus to Bitcoin development, revealed its latest fundraising effort on March 13. This offering, like the previous ones, will be in the form of a private senior convertible notes offering. While some of the funds may be allocated for general corporate purposes, the primary objective is to expand MicroStrategy’s Bitcoin holdings.
MicroStrategy has recently been on a fundraising spree, raising a total of $1.3 billion in the past two weeks. This includes a recently completed senior convertible note offering of $800 million, which was initially announced as a $600 million offering. The figure was later increased to $700 million, with an additional $100 million aggregate principal amount that can be exercised under specific conditions. The proceeds from this offering were used to add 12,000 BTC to MicroStrategy’s Bitcoin treasury reserve.
With its current stack of 205,000 BTC, valued at $15 billion, MicroStrategy is now only 5,000 Bitcoin away from holding at least 1% of Bitcoin’s theoretical maximum supply. If the proposed $500 million offering is successful, it could potentially buy 6,850 Bitcoin.
MicroStrategy’s senior convertible notes will accrue interest semi-annually and will mature on March 15, 2031, unless repurchased, redeemed, or converted earlier as specified in their terms. These debt securities can be converted into cash, shares of MicroStrategy’s class A common stock, or a combination of both.
In addition to its successful Bitcoin acquisitions, MicroStrategy’s stock (MSTR) has been performing exceptionally well. On March 13, it increased by 10.85% to reach $1,766, according to Google Finance. Since February 6, the stock has risen by 254% and has been one of the top performers on the Nasdaq this year.
The rise in MSTR’s stock price is closely tied to the recent rally in Bitcoin, which has seen a 46.1% increase over the last month, reaching $73,050 at the time of publication, according to CoinGecko.