MicroStrategy Doubles Down on Its Bitcoin Strategy with $700 Million Convertible Senior Notes Offering

The well known business intelligence firm, MicrosStrategy is reinforcing its Bitcoin strategy with a determined plan to offer $700 Million in convertible senior notes.

Business intelligence firm MicroStrategy is offering $700 million in convertible senior notes to increase its Bitcoin (CRYPTO: BTC) holdings.

The offering will be available to qualified institutional buyers and will consist of notes due in 2028. Buyers will have the option to convert the notes into cash, MicroStrategy common stock or a combination of both at a rate to be determined.

A portion of the proceeds from the offering will be used to redeem $500 million of MicroStrategy's outstanding secured notes. The remaining proceeds will be used to acquire Bitcoin.

MicroStrategy began to include Bitcoin in its treasury strategy in August 2020. The company's Bitcoin holdings now total 244,800 BTC, an average price of $28,800 per BTC.

MicroStrategy's average entry price for Bitcoin is now above the current price of the cryptocurrency. Despite this, MicroStrategy's average entry price is still well below the all-time high of $68,000.

MicroStrategy made its last Bitcoin purchase in January, when it bought $1.11 billion in BTC. The purchase brought in 18,300 BTC at an average price of $61,000.

MicroStrategy stock closed Friday at $1,508.96, up 17% year-to-date. Bitcoin is also up 17% year-to-date.

MicroStrategy stock price quickly reacted to the news of the offering, rising to $1,525 per share in premarket trading.

The offering is expected to close on March 15, subject to market conditions and other closing conditions.