MicroStrategy has increased its convertible debt offering to $2.6 billion, up from its original $1.75 billion target, according to a Nov. 20 statement.
The firm stated that the proceeds from this offering will fund additional Bitcoin acquisitions and other corporate needs.
Offering details
The convertible notes will be sold privately to institutional buyers under Rule 144A of the Securities Act of 1933 and to select non-US investors following Regulation S. MicroStrategy has also given buyers a three-day option to purchase an extra $400 million in notes.
These notes are unsecured senior obligations that mature on Dec. 1, 2029. They do not bear regular interest, and their principal will not accrete.
According to the firm, the initial conversion rate for the notes is 1.4872 shares of MicroStrategy Class A stock per $1,000 of principal, equating to a conversion price of $672.40 per share. This rate reflects a 55% premium over the average price of $433.80 recorded on Nov. 19. Meanwhile, conversion terms may adjust based on certain events.
MicroStrategy said it expects net proceeds from the offering to be $2.58 billion after accounting for expenses. However, if buyers fully exercise the additional purchase option, proceeds could reach $2.97 billion.
Top 100 public companies
The move coincides with MicroStrategy’s rise into the top 100 US publicly traded companies, where it now ranks 97th, according to CompaniesMarketCap data.
This rise was influenced by the firm’s impressive stock performance, which increased by around 100% in the past month to a two-decade high of over $430. The performance has also favorably positioned the firm against the high-performing stocks of AI giants like Nvidia.
As of press time, early market indications suggest that the trend has continued, with the firm’s pre-market trading rising by around 8%, according to Google Finance data.
MicroStrategy remains the largest Bitcoin-holding public 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 a leader in corporate Bitcoin adoption.
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