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MicroStrategy completes $500 million offering of 6.125% senior secured notes

MicroStrategy CEO Michael Saylor announced the closing of its announced offering of senior secured notes due 2028.

The notes were sold in a private offering to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933 and persons outside of the United States in compliance with Regulation S under the Securities Act.
The notes are fully and unconditionally guaranteed on a senior secured basis by MicroStrategy Services Corporation, a wholly-owned subsidiary of MicroStrategy and may be similarly guaranteed by certain subsidiaries of MicroStrategy that may be formed or acquired after the closing of the offering. MicroStrategy’s existing bitcoin holdings is approximately 92,079 bitcoins and they are being held by a newly formed subsidiary, MacroStrategy LLC.

MicroStrategy estimates that the net proceeds from the sale of the notes and the related guarantees will be approximately $488 million, after deducting initial purchaser discounts and commissions and estimated offering expenses payable by MicroStrategy. MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin to add to its treasury.


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MicroStrategy completes $500 million offering of 6.125% senior secured notes
Ajibola Akamo by Ajibola Akamo June 14, 2021Reading Time: 2 mins read
MicroStrategy to invest $400 million in Bitcoin
<> The Daily Beast Bi-Partisan Inauguration Brunch at Cafe Milano on January 20, 2013 in Washington, DC.


MicroStrategy CEO Michael Saylor announced the closing of its announced offering of senior secured notes due 2028.

The notes were sold in a private offering to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933 and persons outside of the United States in compliance with Regulation S under the Securities Act.


The notes are fully and unconditionally guaranteed on a senior secured basis by MicroStrategy Services Corporation, a wholly-owned subsidiary of MicroStrategy and may be similarly guaranteed by certain subsidiaries of MicroStrategy that may be formed or acquired after the closing of the offering. MicroStrategy’s existing bitcoin holdings is approximately 92,079 bitcoins and they are being held by a newly formed subsidiary, MacroStrategy LLC.

MicroStrategy estimates that the net proceeds from the sale of the notes and the related guarantees will be approximately $488 million, after deducting initial purchaser discounts and commissions and estimated offering expenses payable by MicroStrategy. MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin to add to its treasury.

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What this means
Saylor has been an adamant supporter of cryptocurrencies and an even bigger supporter of the flagship cryptocurrency, Bitcoin. With the amount raised, he will be able to purchase an additional 11,960 bitcoins at the current market price of $40,800. This will bring the company’s holdings in Bitcoin to over 100,000 BTC.

Many analysts have criticized the move as reckless while others see it as the company thinking futuristically into long term prospects and use case of the cryptocurrency. MicroStrategy’s share price is up about 15% today, trading at $592.52.

This should come as no surprise as the company’s shares have been moving in line with Bitcoin since the company started investing in the coin. Bitcoin is also up approximately 14% for the day, as of the time of writing this report.

In case you missed it
Last week, Nairametrics reported on MicroStrategy looking to raise 400 million to buy more bitcoin. The company later announced an increase in the amount from 400 million to 500 million.

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