Nasdaq-listed Bitcoin holder firm MicroStrategy announced Monday evening that it intends to raise $1.75 billion through a private offering of zero-interest convertible senior notes, proceeds of which will be used to acquire additional bitcoin and on other corporate affairs.
MicroStrategy’s 0% senior convertible note indicates that it will not pay regular interest to bondholders. The notes are set to mature in December 2029, and will be offered to individuals believed to be qualified as institutional buyers by Rule 144A of the Securities Act of 1933.
Investors will have the option to convert the notes into cash, shares of MicroStrategy’s Class A common stock, or a mix of both.
MicroStrategy Announces Proposed Private Offering of $1.75B of Convertible Senior Notes. $MSTR https://t.co/dBJMUvfjj1
— Michael Saylor
(@saylor) November 18, 2024
(@saylor) If everything goes according to plan, the Tysons Corner, Virginia-based software firm founded by staunch Bitcoin advocate Michael Saylor, could acquire up to 19,000 additional BTC if it spends the entire $1.75 billion on Bitcoin.
MicroStrategy currently holds 331,200 Bitcoin, worth over $30 billion, following its purchase of another $4.6 billion worth of the alpha crypto on Monday—its largest single-day purchase yet.
MicroStrategy has bought a whopping 142,050 Bitcoin this year, worth around $12.9 billion at current prices. The firm is the highest public-listed Bitcoin holder. The firm started accumulating the premier crypto in 2020, adopting it as a reserve asset.
MicroStrategy’s aggressive Bitcoin strategy is paying off. The company is now up over 130% on its Bitcoin investment, having purchased the stash for an average price of $39,292.
In October, the firm announced its ambitious “21/21” strategy to raise a whopping $42 billion over three years for more Bitcoin purchases, split evenly between $21 billion in equity and $21 billion in fixed-income securities.
The price of Bitcoin was changing hands at $92,213 — roughly 1.7% away from its all-time high of $93,477.11 set on Nov. 13, as per CoinGecko data. BTC has gained over 100% year-to-date, which pales in comparison to MicroStrategy’s shares, which are up over 400% over the same time frame.