Billionaire Michael Saylor Sells $800 Million Convertible Notes to Buy More Bitcoin
MicroStrategy’s billionaire executive chairman, founder and former CEO Michael Saylor has just sold $800 million in convertible senior notes to add to his company’s ~ $13 billion Bitcoin war chest.
Saylor made the announcement in a tweet on his X profile.
MicroStrategy Completes $800 Million Offering of Convertible Notes at 0.625% Coupon and 42.5% Conversion Premium $MSTR https://t.co/c9TEzMqQHq
— Michael Saylor⚡️ (@saylor) March 11, 2024
According to MicroStrategy’s official press release, the cloud software company sold the unsecured bonds, which will mature in 2030, to institutional buyers on March 8 this year at a rate of 0.625%.
The sale of the notes generated approximately $782.0 million, after deductions. The company also confirmed that it used the net proceeds “to obtain additional bitcoins.”
It also “expects to grant to the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $90 million aggregate principal amount of the notes,” the company said.
MicroStrategy shares rallied sharply today. They’re currently up 13% to $1,550. Since MicroStrategy made buying Bitcoin part of its corporate strategy, many have viewed MicroStrategy shares as a proxy for Bitcoin, since the two tend to rise in tandem.
MicroStrategy is easily the largest corporate holder of Bitcoin.
Bitcoin maxis are happy today as the world’s favorite cryptocurrency trades at an all-time high of around $72,000. The last time the industry looked this healthy was back in late 2021, when Bitcoin set a former ATH of around $69,000.
The fever pitch around Bitcoin is really concentrated on two overarching narratives that are really helping to drive
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