MicroStrategy Increases Convertible Note Offering by 40% to $700M in Bitcoin Splurge
MicroStrategy, the largest corporate holder of bitcoin, has increased its convertible note offering by 40% to $700 million, with a 2.25% annual yield. The notes will be unsecured, senior obligations, maturing in June 2032, and are available to institutional investors in a private offering. Initial buyers have an option to purchase an additional $100 million of notes within 13 days of the first issuance. The proceeds from the issuance will be used to acquire more bitcoin and for general corporate affairs. MicroStrategy currently holds 214,400 BTC worth around $14 billion. The company's shares increased nearly 2% in the early Friday session, trading slightly above $1,500. Brokerage firm Bernstein initiated coverage of MicroStrategy, setting a $2,890 price target and assigning an outperform rating.
