MicroStrategy Increases Bitcoin Target to Half a Billion Dollars

Software company MicroStrategy is expanding its Bitcoin (BTC) buying plans. The company announced that it plans to issue $700 million worth of convertible notes maturing in 2032.

Target Increased

According to MicroStrategy's (MSTR) statement today, the previously announced $500 million issuance plan has been increased to $700 million, depending on market conditions.

The notes will pay interest twice a year, on June 15 and December 15, at a 2.25% interest rate. The issuance is expected to be completed on June 17, 2024.

Notes will enter the transformation process in 2032. However, MicroStrategy will be able to buy back all or part of the notes in exchange for cash as of June 20, 2029. The notes will be convertible into cash or shares of MicroStrategy common stock.

Will use it to buy Bitcoin

The company plans to use most of the proceeds from the sale to purchase Bitcoin. It is expected to generate net revenue of $687.8 million from the sale.

MicroStrategy accepted Bitcoin as a reserve asset in August 2020 and has continued to purchase Bitcoin since then. The company, which currently owns 214 thousand 400 Bitcoins, made these purchases by paying an average of 35 thousand 180 dollars per unit.

Investors were given options

The new target announced by MicroStrategy includes the option to issue an additional $100 million in notes within a 13-day period. The notes will be sold only to qualified institutional investors and will not be offered publicly.

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