• MicroStrategy has raised $46.6 million through share sales since September.
• The company suggested the proceeds may be used to pay down debt, including its term loan with Silvergate Bank.
• Michael Saylor’s MicroStrategy had entered into an agreement with underwriter Cowen and Company in September for the sale of up to $500 million in common stock.
MicroStrategy Has Raised $46.6M Through Share Sales
MicroStrategy has raised $46.6 million via share sales since it entered an agreement with underwriter Cowen and Company in September for the sale of up to $500 million in common stock.
Use Of Proceeds
The company also updated its “use of proceeds” statement, saying money raised may also go towards repayment of debt, including its term loan with Silvergate Bank (SI). That loan – for $205 million and taken out in March 2022 – is a floating rate, and has thus gotten more expensive as the U.S. Federal Reserve has hiked short-term interest rates.
Silvergate Loan Maturity
The Silvergate loan matures in March 2025 and does have a prepayment penalty, but that penalty in March 2023 drops by half to just 0.25% of the principal balance being repaid.
Proceeds Used To Add To Bitcoin Holdings
MicroStrategy has previously mostly used proceeds from share sales to add to its bitcoin (BTC) holdings.
Michael Saylor Background
Michael Saylor is CoinDesk’s co-regional news chief, Americas and holds BTC and ETH above CoinDesk’s disclosure threshold of $1,000. He is Executive Chair at MicroStrategy which he lost big during the dot-com bubble crash but aims to rebound again through his investments into crypto assets such as Bitcoin (BTC).