MicroStrategy Increases Convertible Note Offering to $700M

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Tech company MicroStrategy has increased its convertible note offering by 40% to $700 million and has set a 2.25% annual yield.

The notes will be available to institutional investors in a private offering and will mature in June 2032, according to a Friday press release from the company.

An option to purchase an additional $100 million of notes will be granted to initial buyers within 13 days of the first issuance.

The offering is expected to close on Monday and the funds will be used to acquire more bitcoin and for general corporate matters. In early Friday trading, MicroStrategy’s shares rose by nearly 2% to just above $1,500 after a 7.5% decrease the previous day.

Financial services firm Bernstein has initiated coverage of MicroStrategy, giving the company an outperform rating with a price target of $2,890.