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MicroStrategy continues its strategy of bolstering its Bitcoin reserves, this time through a proposed offering of convertible senior notes totaling $500 million, announced on Wednesday.
Additionally, the company mentioned the potential to increase the offering by an extra $75 million. The press release highlighted that MicroStrategy plans to grant initial purchasers of the notes an option to acquire up to an additional $75 million in aggregate principal amount within a 13-day period from the issuance date.
Proceeds from this offering are earmarked for further Bitcoin acquisitions and general corporate purposes. Notably, the sale targets institutional investors exclusively. This move comes swiftly after a recent proposal for an initial $600 million offering, subsequently increased to $700 million, and the closure of a previous $800 million offering of senior convertible notes due in 2030, as announced earlier this week.
Recent filings reveal MicroStrategy’s acquisition of an additional 12,000 BTC for $821 million between February 26 and March 10, bringing their total Bitcoin holdings to approximately 205,000.
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Despite this activity, the company’s stock experienced a slight decline in after-hours trading on Wednesday, hovering around $1,735 per share, yet maintaining an overall upward trajectory. Noteworthy is its impressive growth, with a 676% increase over the past year and a notable 41% surge in the past five days alone.
Coinbase’s announcement of a proposed $1 billion senior convertible notes offering on Tuesday mirrors MicroStrategy’s move. According to a press release, Coinbase intends to utilize the proceeds for general corporate purposes.