Follow Us @
MicroStrategy Completes $3 Billion Bill Sale to Buy Bitcoin
-Trending Marketing news, content marketing, latest Ways to rank your website, marketing discoveries, Local SEO, seo and social media marketing services. enjoy your stay on our website.
Michael Saylor, founder of MicroStrategy, announced that the company has successfully raised $3 billion through a convertible senior note offering. According to Saylor, the offer has a 0% coupon rate and a 55% premium.
In other words, the implied exercise price of the notes is about $672 per share. At the moment, the company’s shares are priced at US$436, according to TradingView.
The share price fell 16% at the opening of trading this Friday (22), but had a strong recovery over the hours. As a result, the shares now register an increase of 9.35% and an accumulated gain of 680% in 2024.
In a press release, MicroStrategy explained that proceeds from the sale will be used to purchase more Bitcoin (BTC) as well as for general corporate purposes. The $3 billion offering consists of convertible senior notes due 2029.
$3 billion convertible note offering
It also includes $400 million in additional notes, purchased through an option exercised by the initial purchasers on November 20, 2024. The notes are unsecured and will not accrue regular interest.
At the end of the term, investors will be able to choose whether they want to convert the notes into cash or company shares. They can also choose to receive a combination of both.
The initial conversion rate is 1.4872 shares for every $1,000 invested, reflecting a 55% premium to the average share price based on the November 19, 2024 quote.
The debt securities mature in 2029, but MicroStrategy can unilaterally redeem them on December 4, 2026, under certain conditions. Investors can also require the company to repurchase the notes on June 1, 2028 or upon the occurrence of specific events.
After all deductions, the net proceeds from the offering amount to approximately $2.97 billion. This latest offering is part of the business intelligence company’s larger goal of raising $42 billion over the next three years. The so-called “21/21 plan” will give the company more capital to buy BTC.
The plan aims to raise $21 billion in equities and $21 billion in fixed-income securities.
MicroStrategy Completes $3 Billion Bill Sale to Buy Bitcoin
Follow TODAYSGIST on Google News and receive alerts for the main trending SEO news, Ai news, latest Ways to rank your website, marketing discoveries, Local SEO and lots more!
MicroStrategy Completes $3 Billion Bill Sale to Buy Bitcoin
SHARE POST AND EARN REWARDS:
Did you like this post?!!! Join our Audience reward campaign and make money reading articles, shares, likes and comment >> Join reward Program
FIRST TIME REACTIONS:
MicroStrategy Completes $3 Billion Bill Sale to Buy Bitcoin
Be the first to leave us a comment, down the comment section. click allow to follow this topic and get firsthand daily updates.
JOIN US ON OUR SOCIAL MEDIA: << FACEBOOK >> | << WHATSAPP >> | << TELEGRAM >> | << TWITTER >
MicroStrategy Completes $3 Billion Bill Sale to Buy Bitcoin
