By Chuck Mikolajczak
NEW YORK (Reuters) – Microstrategy shares fell in extended trade on Monday, after the company announced a private offering for $600 million in convertible senior notes, with proceeds to be used to buy bitcoin.
Shares of the bitcoin development company were down 3.3% at $1,290 after surging 23.59% to $1,334.01 during trading hours, their highest level since March 2000, as the cryptocurrency jumped in price to a high of $67,938 on the session. The move added $4.4 billion in market value, bringing the total to $22.6 billion, per LSEG data.
The cryptocurrency is within striking distance of its record high of $68,999.99 hit in November 2021. Shares of Microstrategy have shot up 111% year-to-date.
The offering is the latest in a string of convertible bond deals as high U.S. interest rates and rising share prices have provided a tailwind.
Last Monday, the company disclosed it had bought about 3,000 bitcoins for roughly $155.4 million in cash, at an average price of $51,813 each, and that as of Feb. 25, it held about 193,000 bitcoins, purchased at an average price of $31,544 each.
(Reporting by Chuck Mikolajczak; Editing by Stephen Coates)
