Benzinga - MicroStrategy Inc (NASDAQ:MSTR) shares are trading lower Tuesday after the company announced a proposed private offering of convertible senior notes.
What Happened: MicroStrategy announced after the market close on Monday that it intends to offer $600 million worth of convertible senior notes due 2030 in a private offering to qualified institutional buyers. The company plans to grant the initial purchasers a 13-day window to buy an additional $90 million worth of the notes.
MicroStrategy said it intends to use the net proceeds from the sale of the notes to buy more Bitcoin, as well as for general corporate purposes.
The offering comes after MicroStrategy shares surged more than 23% during Monday’s regular session and closed at its highest levels since March 2000. MicroStrategy shares have been benefiting from rising Bitcoin prices and have climbed 111% year-to-date. Bitcoin is up approximately 57% over the last month and is knocking on the door of all-time highs.
MicroStrategy is a business intelligence, mobile software and cloud-based services company, focused on accumulating Bitcoin. Last week, the company said it bought an additional 3,000 Bitcoin in February. MicroStrategy held 193,000 Bitcoin as of Feb. 25.
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MSTR Price Action: MicroStrategy shares were down 3.31% at $1,289.80 at the time of publication,, according to Benzinga Pro.
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