MicroStrategy has increased its convertible bond offering to $2.6 billion, up from its original target of $1.75 billion, according to a Nov. 20 report statement.
The company stated that proceeds from this offering will fund additional Bitcoin acquisitions and other business needs.
Offer details
The convertible notes will be sold privately to institutional buyers under Rule 144A of the Securities Act of 1933 and to select non-U.S. investors under Regulation S. MicroStrategy has also given buyers a three-day option to purchase an additional $400 million of notes.
These notes are unsecured senior bonds that mature on December 1, 2029. They bear no regular interest and the principal amount will not increase.
According to the company, the initial exchange rate for the notes is 1.4872 shares of MicroStrategy Class A stock per $1,000 principal amount, translating to a conversion price of $672.40 per share. This rate reflects a 55% premium over the average price of $433.80 recorded on November 19. Meanwhile, the conversion terms can be adjusted based on certain events.
MicroStrategy said it expects net proceeds from the offering to be $2.58 billion, after expenses. However, if buyers fully exercise the additional purchase option, the proceeds could reach $2.97 billion.
Top 100 public companies
This move coincides with MicroStrategy’s rise into the top 100 US listed companies, where it now ranks 97th according to CompaniesMarketCap. facts.
This increase was influenced by the company’s impressive stock performance, which rose about 100% last month to a 20-year high of over $430. The performance has also positioned the company favorably against the high-performing stocks of AI giants like Nvidia.
At the time of writing, early market indications suggest the trend has continued, with the company’s pre-market trading up around 8%, according to Google Finance. facts.
MicroStrategy remains the largest publicly traded Bitcoin company, with over 330,000 BTC worth over $30 billion. This year alone, it has added nearly 150,000 BTC to its holdings, solidifying its position as the leader in corporate Bitcoin adoption.