MicroStrategy, Inc. (MSTR) saw its shares dip in extended trading on Monday following the announcement of a $700 million private offering of convertible senior notes. The company intends to issue these notes, maturing in 2028, and also plans to grant the initial purchasers an option to purchase up to an additional $105 million.
MicroStrategy outlined its intentions for the proceeds: $500 million will be used to redeem outstanding 6.125% senior secured notes due in 2028. The remaining funds will be allocated towards acquiring more Bitcoin (BTC/USD) and for general corporate purposes.
It’s worth noting that MicroStrategy’s shares took a hit during regular trading on Monday, dropping nearly 5%. This came despite Canaccord Genuity maintaining its ‘Buy’ rating for the stock while slightly lowering its price target from $185 to $173.
As of Monday’s after-hours trading, MicroStrategy shares were down 1.47% at $132.55, according to Benzinga Pro.
This news comes at a time when several other tech stocks, including NVIDIA, Micron, and SMCI, also experienced declines on Monday. This broader market trend may be influencing MicroStrategy’s stock performance, along with investor sentiment surrounding the company’s recent move to raise capital through convertible notes.
