Please ensure Javascript is enabled for purposes of website accessibility
Upcoming Event

Best Places to Work in Virginia

Hamburger Menu Hamburger Menu

Tag: stock

MicroStrategy to increase bitcoin holdings by $550M

Tysons-based business software company MicroStrategy Inc. announced Wednesday that it will increase its bitcoin holdings by as much as $550 million following a convertible debt offering. 

In August, the company had announced that it had converted $250 million from its cash holdings into more than 21,000 bitcoins, making it one of the first public companies to use cryptocurrency for cash holdings. The company announced in August it would keep its bitcoin holdings in its corporate treasury reserve — which MicroStrategy CEO Michael Saylor said in a statement would be the principal holding in its treasury reserve strategy. The company in September then announced it had purchased $425 million worth of bitcoin.

Bitcoin recently rose to a new high — gaining 34%, according to November reports, leading the asset to hit a $334 billion market value. The last time the market value was near that was nearly a year ago (Dec. 17, 2019), when it hit a $322.7 billion value, according to market reports. A single bitcoin is worth $18,508.30 as of Dec. 9.

The debt offering is expected to close on Dec. 11. The initial conversion rate for the notes is 2.5126 shares of the company’s common stock per $1,000 principal amount of notes — or approximately $397.99 per share.

“MicroStrategy estimates that the net proceeds from the sale of the notes will be approximately $537.2 million … after deducting the initial purchasers’ discounts and commissions and estimated offering expenses payable by MicroStrategy,” according to a company statement. “MicroStrategy intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its Treasury Reserve Policy pending the identification of working capital needs and other general corporate purposes.”

MicroStrategy employs approximately 2,400 people and offers business data analytics software.

 

Subscribe to Virginia Business.

Get our daily e-newsletter.

Georgia senator made controversial investment in Lynchburg’s BWX Technologies

U.S. Sen. David Perdue, one of Georgia’s two incumbent Republican senators who are facing a Jan. 5 election runoff that will determine the balance of power in the Senate, made profitable purchases of shares in Lynchburg-based nuclear fuel supplier BWX Technologies Inc. — the Navy’s sole nuclear fuel provider — just before Perdue took over chairmanship in 2019 of the Senate subcommittee overseeing the Navy fleet, according to reports. 

Perdue was named chair of the Senate Armed Services Subcommittee on Seapower in January 2019, six weeks after he bought between $40,000 and $290,000 worth of BWX Technologies shares, according to a filing by The New York Times. The publication reported it was impossible to determine the exact amount traded because only ranges were reported in the disclosure forms. 

At the time of the purchase, BWX’s stock was worth approximately $40 per share, according to stock records. A month after Perdue’s appointment, BWX Technologies stock jumped by 25%, according to stock records. While Perdue worked on the National Defense Authorization Act from February to June of 2019, he reportedly sold off all of his shares in BWX Technologies for approximately $50 per share. 

“Like other publicly traded companies, BWX Technologies Inc. is not aware of, and does not control, purchases of its stock by individuals,” BWX Technologies spokesperson Jud Simmons said in a statement. “We were unaware of this matter until it was mentioned in recent media reports.”

In June, Perdue boasted that additional Navy funding had been allocated as part of the defense spending bill.

“The U.S. Navy is one of the most effective tools we as a country have to maintain peace and stability around the world,” Perdue said in a statement. “This bill takes critical steps to improve readiness and recapitalize our fleet. … As chairman of the Seapower Subcommittee, I’m committed to working with the Navy to improve the acquisition process and continue growing our world-class fleet in support of our National Defense Strategy.”

Company subsidiary BWXT Nuclear Operations Group Inc. this February was awarded approximately $1 billion in contracts from the U.S. Naval Nuclear Propulsion Program — in addition to $2.9 billion in submarine reactor component and fuel manufacturing and long-lead materials contracts announced last year.

The company employs approximately 6,600 people across 12 major operating sites in the U.S. and Canada. BXWT also provides management and operations at the U.S. Department of Energy and the National Aeronautics and Space Administration (NASA).

Georgia voters have until Dec. 7 to register for the Jan. 5 election runoff between Perdue and Democratic challenger Jon Ossoff, whom Perdue has declined to debate ahead of the runoff. 

 

Subscribe to Virginia Business.

Get our daily e-newsletter.

AES Corp. to sell $1.8B in debt in private offering

Arlington-based energy company AES Corp. announced Thursday its plans to sell $1.8 billion in debt in a private offering to institutional buyers.

The company will offer $800 million in 1.375% senior notes due in 2026 and $1 billion in 2.45% senior notes due in 2031. 

AES intends to allocate an amount equal to the net proceeds from the sale toward one or more eligible green projects, according to the company. AES Corp. will use the net proceeds from the sale to fund purchases of senior notes due in 2025, 2026 and 2027 in tender offers; to fully redeem tender offer notes not tendered in connection with those tender offers; to fully redeem the $65.0 million aggregate principal amount outstanding of its 4.5% notes due 2023 and $63.0 million aggregate principal amount of its 5.5% notes due in 2024; and to pay certain related fees and expenses and for general corporate purposes. 

The offering is expected to close on Dec. 4.

Fortune 500 company AES Corp. used to focus the majority of its business on coal, but since 2011 has reduced its coal generating power in favor of greener options, such as solar power.

 

Subscribe to Virginia Business.

Get our daily e-newsletter.

 

Telos Corp. goes public with $254M IPO

Ashburn-based cybersecurity federal contractor Telos Corp. announced Thursday it plans to raise $254 million in an initial public offering.

The $14.9 million shares of common stock at a price of $17 per share are listed on the Nasdaq under the ticker symbol TLS — and were up by 12% on Thursday afternoon. The offering is expected to close on Nov. 23.

Telos intends to use the proceeds to repurchase a noncontrolling interest in Telos Identity Management Solutions LLC and to pay off outstanding debt. 

The company provides cybersecurity solutions for IT risk management and information security along with other cloud services. Telos serves military, intelligence and civilian federal government agencies, allied nations and commercial organizations. Founded in 1969, it earned $219.2 million in 2019 revenues.

 

Subscribe to Virginia Business.

Get our daily e-newsletter.

Strategic Education Inc. to raise $191.5M through public stock offering

Herndon-based education company Strategic Education Inc. announced Thursday that it plans to raise $191.5 million through a public stock offering. 

The company, through Aug. 10, will offer for sale 1.9 million shares of its common stock at a public offering price of $105 per share. Strategic Education intends to use some of the proceeds to fund part of its proposed acquisition of Laureate Education Inc.’s Australia and New Zealand operations, which the company announced July 29 it would buy for $642.7 million in cash.

If the proposed acquisition does not finalize, then Strategic Education will use the proceeds for general corporate purpose, which could include other acquisitions, according to the company statement. The transaction is subject to closing conditions and regulatory approvals, but is expected to close by the first quarter of 2021. SunTrust and Bank of America have also agreed to expand Strategic Education’s existing revolving credit facility from $250 million to $350 million, according to the company. 

Strategic Education’s subsidiaries include Strayer College and Capella University.

The online education provider reported nearly $1 billion in revenue last year at $997.1 million.

 

Subscribe to Virginia Business.

Get our daily e-newsletter.