BitcoinBusiness

MicroStrategy Completes $1.05B Offering to Buy More Bitcoin

MicroStrategy stunned the Bitcoin space early last week when it revealed it would be raising $600 million in a new offering of convertible senior notes. The business strategies firm said it wanted to use the proceeds of the sale to purchase additional bitcoin.

This announcement in itself came as a bit of a surprise already, seeing as only in December, MicroStrategy had raised $650 million in the same type of offering, as the BTC Times reported previously.

Following increased demand for Bitcoin, though, the firm upsized its latest round to $900 million on Thursday. 

Just a day later, on Friday, MicroStrategy has completed the funding round, despite initially claiming that it was hoping to close fundraising by next week. What's more, the firm raised $1.05 billion instead of the initial target of $600 million:

"MicroStrategy® Incorporated (Nasdaq: MSTR) (“MicroStrategy”) today announced the closing of its previously announced offering of 0% convertible senior notes due 2027 (the “notes”). The aggregate principal amount of the notes sold in the offering was $1.05 billion." 

MicroStrategy intends to use the net proceeds of the sale, which it estimates to be around $1.03 billion, to buy bitcoin. At press time, that would be equivalent to around 18,392 bitcoin, according to BTCTimes pricing data. 

The purchase will add to the firm's existing stash of over 71,000 bitcoin.

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Nick is a writer and analyst who has been following Bitcoin since 2013. When he is not writing, he works on HTC's Bitcoin phone, EXODUS.