Microstrategy, a software intelligence company listed on Nasdaq, has made another significant purchase of bitcoin. Executive chairman Michael Saylor announced on social media platform X that the company has acquired 11,931 more bitcoins for $786 million. This brings Microstrategy's total cryptocurrency holdings to 226,331 bitcoins, valued at $8.33 billion, with an average purchase price of $36,798 per coin.
The acquisition of the additional bitcoins was funded through the proceeds from a private offering of convertible senior notes, which offer an annual interest rate of 2.25%. Microstrategy explained in its filing with the U.S. Securities and Exchange Commission (SEC) that it had raised approximately $786 million from the offering.
The convertible notes can be converted into cash, shares of Microstrategy's class A common stock, or a combination of both, at the company's discretion. The offering targeted qualified institutional buyers under Rule 144A of the Securities Act. The senior unsecured notes have a semi-annual interest rate of 2.25% and will mature on June 15, 2032. Microstrategy will have the option to redeem the notes from June 20, 2029, if the stock price reaches 130% of the conversion price, with a minimum of $75 million in notes remaining. Noteholders will also have the option to require repurchase on June 15, 2029, or during certain fundamental changes, with an increased conversion rate for certain events.
Microstrategy has a history of selling convertible notes and using the proceeds to purchase bitcoin for its treasury. In fact, the company has referred to itself as the world's "first bitcoin development company." It is committed to the continued development of the bitcoin network through its activities in the financial markets, advocacy, and technology innovation.
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