MicroStrategy Stock Moves Lower On Proposed Offering To Buy More Bitcoin
Portfolio Pulse from Adam Eckert
MicroStrategy Inc (NYSE:MSTR) announced a proposed private offering of $500 million worth of convertible senior notes due 2031 to institutional buyers, with an option to purchase up to an additional $75 million. The proceeds are intended for acquiring more Bitcoin. This follows a recent $700 million offering used for the same purpose. MicroStrategy, focusing on Bitcoin accumulation, holds approximately 205,000 bitcoins. Post-announcement, MSTR shares dropped 2.33% in after-hours trading.
March 13, 2024 | 8:43 pm
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MicroStrategy announced a $500 million offering for Bitcoin acquisition, causing a 2.33% drop in after-hours trading.
The announcement of a significant offering to purchase more Bitcoin has led to a short-term negative reaction in MicroStrategy's stock price. This is likely due to investor concerns over the substantial capital allocation towards Bitcoin, which is seen as a volatile asset. The immediate after-hours trading reaction reflects these concerns.
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