MicroStrategy Unveils $1.75 Billion Convertible Notes Offering to Fuel Bitcoin Expansion

In a strategic move that underscores its commitment to Bitcoin, MicroStrategy has announced plans to raise $1.75 billion through a private offering of zero-coupon convertible senior notes. The company, known for its aggressive Bitcoin accumulation strategy, intends to use the proceeds to acquire additional Bitcoin and support general corporate purposes.

The convertible notes, set to mature on December 1, 2029, will be offered to qualified institutional buyers. Notably, these notes will not bear regular interest and can be converted into cash, MicroStrategy’s class A common stock, or a combination of both. The company may also grant initial purchasers an option to buy an additional $250 million in notes within a three-day period.

This latest financial maneuver comes on the heels of MicroStrategy’s recent $4.6 billion Bitcoin purchase, bringing its total holdings to 331,200 Bitcoin – representing approximately 1.58% of the cryptocurrency’s total supply. The company has now invested $16.5 billion in Bitcoin, with an average purchase price of $49,847 per coin.

Michael Saylor, the company’s executive chairman, continues to position MicroStrategy as the “world’s first and largest Bitcoin Treasury Company.” The firm’s bold strategy has paid significant dividends, with its stock soaring 485% this year compared to Bitcoin’s 112% increase.

Institutional investors have taken notice of MicroStrategy’s approach. Recent filings show major investors like Vanguard Group and Capital International Investors increasing their stakes in the company. The offering aligns with MicroStrategy’s previously announced “21/21” plan to raise $42 billion over three years for Bitcoin acquisitions.

The company will host a video webinar on November 19 to discuss the proposed convertible notes offering, further demonstrating its transparency and commitment to its innovative financial strategy.

As the cryptocurrency market continues to evolve, MicroStrategy remains at the forefront of corporate Bitcoin adoption, providing a unique investment vehicle for those seeking exposure to digital assets through a publicly traded company.