MicroStrategy To Offer $700M Notes To Buy Bitcoin, MSTR Stock Falls 5%

American business intelligence and software firm MicroStrategy is on track to buy more Bitcoin (BTC). Executive Chairman Michael Saylor updated his followers about the company’s plans to offer a private offering of $700 million in convertible senior notes. MSTR stock price plunges nearly 5% as a result of the announcement and current crypto market sentiment.

MicroStrategy In Epic Bitcoin Buying Streak

Michael Saylor’s firm is on a major Bitcoin buying streak to sustain its Treasury Reserve Asset (TRA) policy. As Saylor announced, this offering will only be made available to qualified institutional buyers based on Rule 144A under the Securities Act of 1933. The proposed private offering is subject to market and other conditions.

According to the announcement, MicroStrategy intends to channel the net proceeds from this offering to redeem all $500 million outstanding aggregate principal amount of its 6.125% Senior Secured Notes due in 2028. After that, the balance will go towards acquiring more BTC and for general purposes.

This private debt offering comes days after the company bought $1.1 billion worth of BTC, fueling a major jump in its stock price. This huge sum marked one of its largest acquisitions since 2020 and accounted for 18,300 BTC. As a result of the latest acquisition, its total Bitcoin holding is now pegged at 244,800 BTC.

MSTR Stock Price Slips

MicroStrategy started buying Bitcoin in August 2020 thanks to its co-founder Michael Saylor and has remained consistent in this regard. The firm has consistently offered senior convertible notes to boost its BTC bets.

Recently, the software company announced an $800 million convertible notes offering in June. A week later, MicroStrategy purchased 11,931 Bitcoin units at an average price of approximately $65,883 per coin.

Significantly, the firm’s BTC acquisition strategy has benefited its share price. MSTR has locked in so much value in the last four years compared to its counterparts. Noteworthy, it was one of the few shares that recently surged after DNC presidential candidate Kamala Harris topped her Republican opponent, Donald Trump, in a debate last week.

Even the latest BTC acquisition triggered a jump in the stock’s price. However, MSTR stock price closed 4.91% lower at $134.53 on Monday. Moreover, the price is down 0.61% in a month.