MicroStrategy Generates $604M in Funding Through Note Sales to Acquire 9K Bitcoin

MicroStrategy, a major holder of Bitcoin (BTC), has successfully completed another offering of convertible notes in order to increase its Bitcoin reserves. The former CEO of MicroStrategy, Michael Saylor, announced on March 18 that the company had finalized the offering of 0.875% convertible senior notes due in 2031. The total value of the notes sold in the offering was $603.75 million, including $78.75 million from the option to purchase additional notes. The notes were privately sold to qualified institutional buyers in compliance with US securities laws. This offering comes shortly after MicroStrategy completed an $800 million convertible note offering on March 8, which was used to acquire 12,000 BTC. Similar to the previous offering, the net proceeds from the sale of the convertible notes will be used to purchase more Bitcoin. Saylor also revealed that MicroStrategy had acquired an additional 9,245 BTC using the proceeds from the convertible notes and excess cash. The average price of this purchase was $67,382 per BTC. MicroStrategy now holds a total of 214,246 BTC, which is equivalent to 1.02% of Bitcoin’s total supply. The firm acquired its entire Bitcoin stash at an average price of $35,160 per BTC. It should be noted that the notes issued by MicroStrategy are senior to common shares, giving holders priority in the event of bankruptcy or liquidation. Saylor has established himself as a prominent Bitcoin advocate and has no plans to sell Bitcoin, referring to it as his exit strategy.