Business intelligence firm MicroStrategy has revealed the pricing details for its latest sale of convertible senior notes. It estimates that the net proceeds of the sale—which will be used to buy Bitcoin—may be up to $1 billion, if the investors buy the additional notes on offer.
The firm is selling $900 million of notes in a private offering to institutional investors. These investors will be able to buy an additional $150 million of notes, if they so wish. MicroStrategy estimates that the net proceeds will be $879 million, or about $1 billion if the additional notes are bought. This is the money that it will then use to buy Bitcoin.
The estimated date of the offering will be on February 19, in two days time. The notes will mature in February 2027 unless they have been repurchased before then. After February 20, 2024, MicroStrategy may redeem the notes for cash.
MicroStrategy already owns a total of 71,079 Bitcoin. It paid around $1.145 billion for its stash, which is now valued at around $3.5 billion. These Bitcoin purchases have also increased the firm's share price by 500% in just three months.
This is the second time that it has run a sale notes in order to buy Bitcoin. In December, it sold $650 million of notes with a conversion price of $397.99 per share. This latest sale has a much higher conversion price of $1,432.46 per share.
On Twitter, MicroStrategy CEO Michael Saylor said, "Bitcoin never sleeps, pal." He also noted that gold has been on the decline since MicroStrategy started buying Bitcoin, calling it "the superior asset."