MicroStrategy Doubles Down on Bitcoin with Expanded $2.6B Convertible Notes Offering
MicroStrategy has significantly expanded its latest convertible notes offering from $1.75 billion to $2.6 billion, signaling continued confidence in the cryptocurrency’s potential.
The company, led by Bitcoin evangelist Michael Saylor, announced the upsized offering on Wednesday, citing “high demand” from institutional investors. These zero-interest convertible senior notes, set to mature in 2029, are exclusively available to qualified institutional buyers and represent another calculated step in MicroStrategy’s aggressive Bitcoin acquisition strategy.
With this latest financial maneuver, MicroStrategy could potentially purchase approximately 27,450 additional Bitcoin at current market prices. The company’s existing Bitcoin treasury already stands at an impressive 331,200 BTC, valued at over $30 billion—representing 1.58% of the token’s total possible supply.
The notes come with intriguing conversion options, allowing holders to convert them into cash, MicroStrategy stock, or a combination of both. The initial conversion price is set at $672.40 per share, a substantial 55% premium over the November 19 stock price.
The company’s strategic pivot has paid significant dividends. MicroStrategy’s stock has surged an extraordinary 528% year-to-date, propelling the company into the top 100 U.S. publicly traded companies by market capitalization. This remarkable performance coincides with Bitcoin reaching new all-time highs, recently breaching the $94,000 mark.
“Given the high demand, we upsized our $MSTR offering of 0% convertible bonds due 2029 from $1.75 billion to $2.6 billion,” Saylor explained, highlighting the company’s continued confidence in its Bitcoin-centric treasury approach.
MicroStrategy’s persistent Bitcoin accumulation strategy continues to challenge traditional corporate treasury management. What was once primarily a business intelligence software company has transformed into what Saylor now describes as the “world’s first and largest Bitcoin treasury company.”
The offering is expected to close on November 21, 2024, subject to customary closing conditions. Net proceeds are estimated at $2.58 billion, potentially increasing to $2.97 billion if initial purchasers exercise additional note options.
As Bitcoin’s mainstream adoption accelerates and institutional interest grows, MicroStrategy remains at the forefront of this financial revolution, demonstrating an unparalleled commitment to digital asset investment.
