Summary
TLDR: MicroStrategy, led by Michael Saylor, has increased its convertible senior notes offering to $525 million to acquire more Bitcoin. The notes have an interest rate of 0.875% and can be redeemed in cash after March 2028. MicroStrategy aims to position itself as a “Bitcoin development company” and has already accumulated over 200,000 bitcoins. This move reflects a growing corporate interest in Bitcoin as a treasury asset to hedge against inflation.
Key Points
1. MicroStrategy has upsized its planned convertible senior notes offering from $500 million to $525 million.
2. The company intends to use the proceeds to acquire more Bitcoin, following a strategy it has pursued since 2020.
3. MicroStrategy estimates the net proceeds of the offering will be approximately $515 million after fees and expenses.