MicroStrategy Increases Convertible Note Offering by 40% to $700M in Bitcoin Splurge

• MicroStrategy raised its latest convertible note offering by $200 million from an original plan of $500 million.
• It also offered initial buyers an option to purchase an additional $100 million of the notes.
• Broker Bernstein set a $2,890 price target for the company's shares.

Nasdaq-listed software firm MicroStrategy (MSTR), the largest corporate holder of bitcoin (BTC), increased its convertible note offering by 40% to $700 million and priced it to offer a 2.25% annual yield.

The notes, available to institutional investors in a private offering, will be unsecured, senior obligations and mature in June 2032, the company said in a Friday press release. The Tysons Corner, Virginia-based company also granted initial buyers an option to purchase an additional $100 million of notes within 13 days of the first issuance. The company expects to close the offering on Monday. The proceedings of the issuance will be used to acquire more bitcoin and for general corporate affairs.

The company's shares added nearly 2% in the early Friday session, changing hands at slightly above $1,500 following yesterday's 7.5% decline. Earlier today, brokerage firm Bernstein initiated coverage of Microstrategy, setting a $2,890 price target and assigning an outperform rating.

MicroStrategy started buying the oldest and largest crypto asset in 2020 for its treasury. Now, it holds 214,400 BTC worth some $14 billion, making the company the biggest publicly listed bitcoin holder. The company's executive chairman, Michael Saylor, is a vocal supporter of bitcoin.