Key Takeaways
- MicroStrategy launched a $1.75B note sale for Bitcoin purchases.
- The firm acquired $4.6B in Bitcoin on the same day.
- Its stock has risen 460% over the past year due to its Bitcoin-first strategy.
MicroStrategy has unveiled plans to issue $1.75 billion in zero-coupon convertible notes, maturing in 2029, to finance additional Bitcoin purchases.
The announcement comes as the company continues its aggressive Bitcoin-first strategy, marked by a $4.6 billion Bitcoin acquisition yesterday.
Convertible notes
The convertible senior notes will not pay interest and are offered at a discount, with maturation tied to MicroStrategy stock.
The company stated in its press release:
MicroStrategy intends to use the net proceeds from this offering to acquire additional bitcoin and for general corporate purposes.
Bitcoin holdings
This follows a $2 billion Bitcoin purchase last week, further solidifying MicroStrategy’s position as the world’s largest Bitcoin holder. The firm’s total Bitcoin holdings now dwarf those of other corporate buyers.
The company’s aggressive buying has fueled its stock’s meteoric rise, reaching a 24-year high in October. Over the past year, MicroStrategy’s stock price has soared by 460%, including a 75% increase this month alone.
Webinar
CEO Michael Saylor announced a webinar for November 19 to discuss the offering, open to Qualified Institutional Buyers who are eligible to purchase the notes.
While Bitcoin purchases have propelled MicroStrategy’s growth, they also tie the company’s value closely to Bitcoin’s performance. Despite uncertainties around the terms of the offering, the firm remains committed to its Bitcoin-first policy amidst the ongoing bull market.
