Bitcoin titan MicroStrategy raises share offering to $700 million

MicroStrategy, the largest holder of Bitcoin (BTC), announced on June 14 the price of convertible senior notes due 2032, which total $700 million, which is $200 million more than the values ​​originally announced.

MicroStrategy estimates that the net proceeds from the sale of the notes will be approximately $687.8 million (or approximately $786 million if the initial purchasers exercise their option to purchase additional notes in full), after deducting the initial purchasers' discounts and commissions and estimated offering expenses, payable by MicroStrategy.

The conversion rate for the notes will initially be 0.4894 shares of MicroStrategy Class A common stock per $1,000 par value of the notes, which is equivalent to an initial conversion price of approximately $2,043.32 per share.

The initial conversion price of the notes represents a premium of approximately 35% to the combined weighted average price of MicroStrategy's Class A common stock in the US from 9:30 AM to 16:00 PM EST on Thursday, June 13, 2024, which was $1,513.46

The company intends to to use the net proceeds from the sale of the bonds to acquire additional Bitcoin tokens and for general corporate purposes.