Self-proclaimed Bitcoin development company MicroStrategy (MSTR) will expand its stack of 205,000 Bitcoins (BTC) after pricing a $525 million convertible note.
The private placement was increased from the originally planned $500 million and the buyers were granted an option to purchase up to an additional $78.5 million of the security, meaning the proceeds are expected to be around $600 million becomes.
The convertible senior notes will carry an interest rate of 0.875% per annum, compared to 0.625% in an $800 million sale of similar debt that took place just days ago. The conversion price of the new notes will be $2,327.31 per share, a premium of approximately 40% to MSTR's Thursday average price of $1,662.20.
MSTR shares fell 5% on Thursday as Bitcoin fell below $70,000. Shares are down 3.3% premarket, alongside a continued decline in Bitcoin, which now trades at $67,700.
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