MicroStrategy Raises $800M, Buys More Bitcoin Amid Sizzling Rally: What Investors Need To Know (CORRECTED)

Editor’s Note: This article has been updated to clarify that MicroStrategy has already used the $800M raised to buy more Bitcoin.

Michael Saylor-led MicroStrategy Inc. MSTR said it has raised $800 million by selling convertible notes — essentially special loans that can be converted into company stock later. 

Investors bought all the notes offered, with an additional $100 million option fully exercised, the company said in a statement.

Here’s the breakdown:

• Amount Raised: $800 million
• Interest Rate: Low (0.625% per year)
• Maturity Date: March 15, 2030 (unless converted to stock earlier)

How MicroStrategy Will Use the Money:

MicroStrategy used this new funding to buy even more Bitcoin BTC/USD, which early on Monday broke the $70,000 barrier and is set to rise even higher, as per many analysts.

Key Details For Investors:

• The notes can’t be easily traded and were only sold to large institutions.
• MicroStrategy said it can buy back the notes under certain conditions after March 2027, or investors can require them to be bought back in September 2028 under specific circumstances.
• The notes can be converted into cash or MicroStrategy stock at a later date, with the conversion price determined by the company’s stock price at the time.

According to a company filing, MicroStrategy acquired an additional 12,000 Bitcoin tokens for $821.7 million between Feb. 26 and March 10, bringing its total holdings to approximately 205,000 Bitcoin, Bloomberg reports.

Price Action: Shares of MSTR shot up 8.59% to $1,548 before the opening bell on Monday, after having closed nearly 10% higher in the previous session, according to data from Benzinga Pro.

Read Next: 

• BlackRock’s Bitcoin ETF Beats MicroStrategy In BTC Holdings In Just Two Months Of Launch
• Bitcoin To $100,000? Here’s what gold bug Peter Schiff said could happen on Anthony Pompliano’s podcast.