The largest corporate bitcoin (BTC) holder, MicroStrategy (MSTR), a software company listed on the Nasdaq, upped the size of its convertible note offering by 40% to $700 million, and priced it to yield 2.25% annually. According to a press release issued by the firm on Friday, the notes are senior obligations, unsecured, and will mature in June 2032. Institutional investors can purchase them through a private offering. Within 13 days of the initial offering, the Tysons Corner, Virginia-based company gave its initial investors the opportunity to purchase an additional $100 million in notes. Monday is when the company plans to close the offering. The proceeds from the issuance will be utilized for both normal business operations and the purchase of further bitcoin.
After falling 7.5% yesterday, the company’s shares gained about 2% in the early Friday session, trading at just over $1,500. Brokerage firm Bernstein began covering Microstrategy earlier today, putting an outperform rating on the company and a $2,890 price target. In 2020, MicroStrategy began investing in the oldest and biggest cryptocurrency asset for its Treasury. With 214,400 BTC now valued at over $14 billion, the business is the largest bitcoin holder that is openly traded. Michael Saylor, the executive chairman of the corporation, is an outspoken advocate of bitcoin.