MicroStrategy Prices $2B Debt Offering
MicroStrategy Raises $2 Billion in Convertible Notes
MicroStrategy, a business intelligence firm and prominent Bitcoin investor, announced the pricing of $2 billion in convertible senior notes due in 2030. This offering includes a 35% conversion premium and represents one of the company's largest bond issuances since its initial Bitcoin treasury reserve strategy in 2020.
Key Details of the Offering
- $2 billion in convertible senior notes issued.
- 35% conversion premium.
- Notes due in 2030.
- Private placement to institutional investors.
- $300 million over-allotment option.
- Expected closing date: February 21, 2025.
This follows MicroStrategy's previous $3 billion convertible bond offering in November 2024, which carried a 55% conversion premium. The company currently holds 478,740 Bitcoins, with an average acquisition price of $65,033 per Bitcoin. This represents a significant investment, totaling approximately $31.1 billion, currently showing an approximate 49% gain based on Bitcoin's recent price of $97,000.
MicroStrategy's market capitalization stands at $80.5 billion. This latest debt issuance demonstrates the company's ongoing commitment to its Bitcoin strategy and its efforts to secure funding for further Bitcoin acquisitions. Their January 2025 announcement outlined plans to raise $21 billion for Bitcoin investments throughout the year.
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