MicroStrategy Raises Debt Amount to $1.0 Billion at 0% Due 2027 to Buy More Bitcoin

Publicly-listed MicroStrategy announced the pricing of its debt issuance, which has been raised from $690 million to $900 million aggregate principal amount, up to an additional $150 million of 0% convertible senior notes due 2027.

This company estimated the net proceeds from the sale of the notes to be $1.0 billion if the initial purchasers exercise in full their option to purchase the additional notes after deducting the initial purchasers’ discounts, commissions, and expenses paid.

The net proceeds from the sale of the notes will be used to acquire additional Bitcoin, adding to the company’s 71,079 BTC holdings.

Bitcoin is currently trading above $50,000, and during the day, it went as high as $51,717 level on cryptocurrency exchange Coinbase, which has been selected as the primary execution partner by MicroStrategy.

“Michael Saylor continues to lead the charge through the bull, putting his money where his mouth is, adding another significant buy to his companies sizeable BTC position,” noted HXRO Labs.

The convertible notes will be sold in a private offering to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933. The offering is expected to close on Feb. 19, 2021. The latest announcement reads,

“The notes will be unsecured, senior obligations of MicroStrategy. The notes will not bear regular interest, and the principal amount of the notes will not accrete.”

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