MicroStrategy Convertible Notes Worth $500M Continue To Be Offered

Key Points:

• MicroStrategy aims to raise $500 million for more Bitcoin after a recent $822 million purchase.
• With 205,000 BTC now in its treasury, MicroStrategy leads as the largest corporate Bitcoin holder.
• The company’s bold moves, including an $800 million MicroStrategy convertible note offering, have rattled short sellers, who are facing losses amid surging stock prices.

MicroStrategy, a leading business analytics firm known for its significant Bitcoin investments, is once again making headlines.

MicroStrategy Convertible Notes: Plans for $500 Million Raise

Just days after acquiring an additional 12,000 Bitcoin units for approximately $822 million, the company has announced its intention to raise another $500 million through a bond offering. This move aims to bolster its Bitcoin treasury reserve, which currently stands at 205,000 BTC, valued at an impressive $15 billion.

The bond offering, consisting of MicroStrategy convertible notes due in 2031, is set to be offered to qualified institutional buyers. This comes on the heels of MicroStrategy’s recent $800 million senior convertible note offering, completed earlier this week, which was initially announced as a $600 million offering but increased to $700 million due to high demand.

MicroStrategy’s Financial Maneuvers Alarm Short Sellers

MicroStrategy’s aggressive Bitcoin acquisition strategy has garnered attention, especially considering the company’s recent financial maneuvers. In the first three months of the year, MicroStrategy short sellers have faced losses exceeding $3.3 billion, attributed to the company’s surging stock prices, which have seen a remarkable 155% increase.

The MicroStrategy convertible notes, while serving to raise funds for Bitcoin purchases, offer flexibility for holders. Until September 15, 2028, holders have the option to require MicroStrategy to repurchase their notes for cash. Additionally, holders can convert the notes into cash, shares of MicroStrategy’s class A common stock, or a combination of both at MicroStrategy’s discretion.