MicroStrategy Plans to Expand Its Bitcoin Holdings with 500 Million Dollars Raise, Currently Holding 205,000 BTC

Crypto News– MicroStrategy Incorporated has significantly bolstered its Bitcoin holdings by acquiring an additional 12,000 Bitcoins. Valued at approximately $822 million, the purchase was funded through convertible notes and surplus cash.

MicroStrategy Plans to Expand Its Bitcoin Holdings with 500 Million Dollars Raise, Currently Holding 205,000 BTC

With this acquisition, MicroStrategy’s Bitcoin stash now totals 205,000, valued at over $15 billion. This surge in holdings coincides with Bitcoin’s ascent, reaching a new all-time high above $73,000. In response, MicroStrategy, recognized for software development but renowned as a major Bitcoin investor, saw its stock surge by 11% on Wednesday, contributing to a week of gains: 7.4% on Tuesday, 4.1% on Monday, and 9.7% on Friday.

Since announcing a debt offering on March 6, MicroStrategy‘s stock has surged by 68%, marking a remarkable 180% growth this year, following a 346% increase in 2023. Additionally, MicroStrategy unveiled plans to issue $500 million in convertible senior notes due in 2031, targeting qualified institutional buyers under Rule 144A of the Securities Act of 1933.

The offering includes an option for initial purchasers to acquire an extra $75 million in notes within 13 days of issuance. These unsecured, senior obligations of MicroStrategy carry interest payments every six months and are earmarked for further Bitcoin acquisitions and operational needs. The notes can be converted into cash, shares of MicroStrategy’s class A common stock, or a blend of both at the company’s discretion. Conversion conditions are based on specific events and periods until September 15, 2030, with an open conversion possibility until the second trading day before maturity.

Notably, the sale of these notes and potential shares of class A common stock will not be registered under the Securities Act or any state securities laws, constituting a private offering tailored to bypass registration requirements.