Blogs & Articles: MicroStrategy Increases Stock Sale to $700M for Additional Bitcoin Purchases 🔗 12 weeks ago

MicroStrategy has decided to increase its planned stock sale to raise additional funds for purchasing Bitcoin. The company now aims to raise $700 million, up from the initially planned $500 million.

On June 13th, MicroStrategy announced its intention to raise $500 million through the sale of convertible senior notes to qualified institutional buyers.

The primary purpose of these funds is to acquire more Bitcoin for its corporate treasury, which already holds over 214,400 Bitcoin valued at $15 billion.

The following day, the company raised the offering to $700 million, with the deal expected to close on June 17th.

Since 2020, MicroStrategy has aggressively acquired Bitcoin under Michael Saylor's guidance, utilizing debt to capitalize on market fluctuations. The company expressed confidence in Bitcoin's long-term appreciation.

By issuing convertible senior notes, MicroStrategy gains financial flexibility. These notes pay interest and mature in 2032, with noteholders having the option to convert them into MicroStrategy stock before maturity.

This structure allows investors to benefit from potential Bitcoin price increases through stock conversion while protecting noteholders from downside risk due to their senior unsecured status.

While MicroStrategy may use funds not allocated to Bitcoin purchases for general corporate purposes, its primary intent is to expand its Bitcoin holdings.