MicroStrategy, led by Michael Saylor, has announced an upsized offering of $700 million in senior convertible notes to further expand its Bitcoin holdings. This move signals the company's continued commitment to investing in Bitcoin and pursuing general corporate objectives.

The notes will mature in 2032 and offer a 2.25% interest rate, paid semi-annually starting December 15, 2024. The offering is scheduled to close on June 17, 2024, subject to customary conditions. The notes will be sold privately to institutional buyers in accordance with Rule 144A under the Securities Act of 1933.

The conversion rate starts at 0.4894 shares per $1,000 of notes, equating to an initial conversion price of approximately $2,043.32 per share. This price represents a 35% premium over the volume-weighted average price of $1,513.46 on June 13, 2024. Adjustments to the conversion rate may occur based on certain events.

MicroStrategy intends to use the proceeds of approximately $687.8 million, or $786 million if the additional purchase option is exercised, to acquire more Bitcoin and for other corporate purposes. This move aligns with the company's strategy to solidify its position as a leading Bitcoin holder.

The decision to increase the notes offering highlights MicroStrategy's ongoing commitment to leveraging Bitcoin as a core part of its financial strategy. Given the firm's increased focus on Bitcoin, Bernstein has recently issued an "outperform" rating to MicroStrategy, raising the price target for MSTR stock to $2,890.