Home Economy News MicroStrategy shares fall 13% after convertible deal for bitcoin purchases

MicroStrategy shares fall 13% after convertible deal for bitcoin purchases


MicroStrategy shares fall 13% after convertible deal for bitcoin purchases By Reuters

Breaking News



Published Mar 19, 2024 10:19AM ET

© Reuters. FILE PHOTO: Representations of cryptocurrency Bitcoin are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) – Shares in MicroStrategy were down 13% on Tuesday as bitcoin fell after the company announced it had completed a $603.75 million convertible debt offering – its second in a week – to raise money to buy bitcoin.

The deal, used by the company to raise money to buy bitcoin, follows an $800 million convertible offer that it announced it had completed just a week before.

The company, which also said on Tuesday that it bought 9,245 bitcoins for $623 million between March 11 and March 18, saw its shares tumble as low as $12,750, which was their lowest level since March 7. Bitcoin was last down 5.9% at $63,424.

The latest sale was of 0.875% convertible senior notes due 2031 and convertible into cash or shares of MicroStrategy’s class A common stock, or a combination of both.

Before Sept. 15, 2030, the notes would only be convertible after certain events and during certain periods, according to MicroStrategy.

The conversion rate, which is subject to adjustment, is initially 0.4297 MicroStrategy shares per $1,000 principal amount of notes, or the equivalent to a conversion price of approximately $2,327.21 per share, according to the company.

MicroStrategy said this represents a premium of about 40% over the volume weighted average price of its shares on March 14, 2024, which was $1,662.1999.

MicroStrategy shares were still up more than 100% year to date.

MicroStrategy shares fall 13% after convertible deal for bitcoin purchases

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News