The firm known for its business intelligence services and Bitcoin investments, previously referred to as MicroStrategy, is aiming to raise an additional $2 billion through 0% senior convertible notes, with the goal of purchasing more Bitcoin.
The initial note purchasers will have the opportunity to buy up to $300 million more in notes, which can be exercised within five business days after issuance, according to a statement from the company on February 18.
The company clarified that it intends to use the proceeds from this offering to acquire more Bitcoin and for general working capital.
Senior convertible notes are a type of debt that can later be converted into equity. They are considered senior to common stock, meaning holders are prioritized in the event of liquidation or bankruptcy.
Convertible notes have been a key part of the company’s strategy to follow its 21/21 Plan—targeting $42 billion in capital over three years, split between equity and fixed-income securities—to buy more Bitcoin.
This plan was devised by the company’s executive chairman and co-founder, Michael Saylor.
Since the announcement of the $42 billion capital plan on October 30, the firm has already raised more than half of that target, acquiring almost 200,000 Bitcoin. Its total Bitcoin holdings have now reached 478,740, making it the largest corporate Bitcoin holder, according to data from BitBo’s BitcoinTreasuries.NET.
The new notes are scheduled to mature on March 1, 2030, unless they are repurchased, redeemed, or converted earlier, and are “subject to market and other conditions,” the company noted.
Despite the announcement, the company’s stock (MSTR) saw little movement. It ended down just over 1% on February 18 and remained flat after hours, based on Google Finance data.
However, MSTR shares have surged 372% in the past year, making it one of the best-performing stocks on the US market during that period.
Even with the Bitcoin purchases, which coincided with a rise in Bitcoin’s price, the company reported a net loss of $670.8 million for Q4.
For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble
What is your opinion on this particular topic? Leave us your comment below! We are always interested in your opinion!
