On Tuesday, shares of MicroStrategy (MSTR.O), plummeted by 13% as the price of bitcoin declined. This came after the firm reported that it had successfully completed a convertible debt offering of $603.75 million, which was its second offering in a week. The company's goal was to obtain funds to purchase bitcoin.
On Tuesday, shares of MicroStrategy (MSTR.O), plummeted by 13% as the price of bitcoin declined. This came after the firm reported that it had successfully completed a convertible debt offering of $603.75 million, which was its second offering in a week. The company's goal was to obtain funds to purchase bitcoin.
The firm also said on Tuesday that it had purchased 9,245 bitcoins for a total of $623 million between March 11 and March 18. As a result, the company's shares dropped to a level of $12,750, which was their lowest level since March 7. Bitcoin was recently seen at $63,424, a decrease of 5.9%.
The most recent transaction involved the sale of senior notes with a conversion rate of 0.875% by the year 2031. These notes are convertible into either cash or shares of MicroStrategy's class A common stock, or a combination of the two.
Before the 15th of September in the year 2030, the notes would only be convertible following specified occurrences and during particular durations, as stated by MicroStrategy.
The company claims that the conversion rate was initially 0.4297 MicroStrategy shares for every $1,000 principal amount of notes.
This information comes from the company. When converted into dollars, this is equivalent to a price of around $2,327.21 per share. There is, nevertheless, the possibility that the conversion rate will shift. In the trading session that took place on March 14, 2024, the volume weighted average price of MicroStrategy's shares was $1,662.1999.
MicroStrategy estimates that this amount represents a premium of around forty percent over the price that was mentioned earlier. Throughout the course of the year, MicroStrategy's stock has continued to increase by more than one hundred percent.
follow for more updates