01—Abstract
Summary
Summary of the 8-K filed March 19, 2024. Cited figures are marked; the original filing is the authoritative source.
On March 19, 2024, MicroStrategy Incorporated (now Strategy Inc) disclosed that it had completed a private offering of convertible senior notes on March 18, 2024.
The offering carried a 0.875% coupon and an approximately 40% conversion premium over the U.S. composite volume weighted average price of its class A common stock on March 14, 2024. It was upsized to a total of $603.75 milliona in aggregate principal, including the exercise of the initial purchasers' option for $78.75 million of additional notes. Net proceeds to MicroStrategy totaled approximately $592.3 million.
The company announced that between March 11, 2024 and March 18, 2024, it acquired approximately 9,245 bitcoins for approximately $623.0 millionb in cash. The purchase used $592.3 million of offering proceeds and $30.7 million of Excess Cash, at an average price of approximately $67,382 per bitcoin, inclusive of fees and expenses.
As of March 18, 2024, MicroStrategy and its subsidiaries held an aggregate of approximately 214,246 bitcoins. These were acquired at an aggregate purchase price of approximately $7.53 billionc, an average of approximately $35,160 per bitcoin, inclusive of fees and expenses.
02—Key points
Key Highlights
- Completed a private offering of convertible senior notes on March 18, 2024, upsized to $603.75 million in aggregate principal, including $78.75 million of additional notes from the initial purchasers' option exercise.
- Offering carried a 0.875% coupon and an approximately 40% conversion premium over the reference VWAP of class A common stock on March 14, 2024.
- Net proceeds to MicroStrategy totaled approximately $592.3 million.
- Acquired approximately 9,245 bitcoins between March 11 and March 18, 2024 for approximately $623.0 million in cash, at an average of approximately $67,382 per bitcoin.
- Funded the purchase with $592.3 million of offering proceeds and $30.7 million of Excess Cash.
- As of March 18, 2024, total holdings were approximately 214,246 bitcoins, acquired at an aggregate cost of approximately $7.53 billion, or about $35,160 per bitcoin.
03—Questions
Frequently Asked Questions
How much did MicroStrategy raise in the convertible notes offering?
The offering was upsized to a total of $603.75 million in aggregate principal amount, including $78.75 million of additional notes purchased when the initial purchasers exercised their option. Net proceeds to MicroStrategy totaled approximately $592.3 million.
What was the terms of the convertible notes?
The notes carried a 0.875% coupon and an approximately 40% conversion premium over the U.S. composite volume weighted average price of MicroStrategy's class A common stock from 9:30 a.m. through 4:00 p.m. Eastern Daylight Time on March 14, 2024.
How much bitcoin did MicroStrategy buy with the proceeds?
Between March 11, 2024 and March 18, 2024, MicroStrategy acquired approximately 9,245 bitcoins for approximately $623.0 million in cash, at an average price of approximately $67,382 per bitcoin, inclusive of fees and expenses. The purchase used $592.3 million of offering proceeds and $30.7 million of Excess Cash.
What is MicroStrategy's total bitcoin holding as of March 18, 2024?
As of March 18, 2024, MicroStrategy, together with its subsidiaries, held an aggregate of approximately 214,246 bitcoins. These were acquired at an aggregate purchase price of approximately $7.53 billion, or an average of approximately $35,160 per bitcoin, inclusive of fees and expenses.
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