Self-reported MicroStrategy (MSTR), a bitcoin development company, has priced a $525 million convertible debt offering and plans to add to its 205,000 bitcoin (BTC) stack.
The $500 million private placement was increased, and buyers were given the opportunity to purchase up to an additional $78.5 million of the paper, so profits are probably closer to $600 million. Interest rates on the convertible senior notes will be 0.875% annually, as opposed to 0.625% in a debt transaction of $800 million that happened a few days ago.
The new notes’ conversion rate will amount to $2,327.31 per share, which is around 40% more than MSTR’s Thursday average price of $1662.20.
On Thursday, MSTR’s stock fell 5% as the price of bitcoin fell below $70,000. Premarket trading has seen a 3.3% decline in shares as bitcoin, which is currently trading at $67,700, continues to decline.