MicroStrategy Increases Convertible Note Offering to $2.6B

Business intelligence company MicroStrategy has increased its convertible senior note sales offering to $2.6 billion, demonstrating its aggressive stance on Bitcoin acquisition. Notably, this move comes barely two days after the firm disclosed its plan to raise $1.75 billion.

Given high demand, we upsized our $MSTR offering of 0% convertible bonds due 2029 from $1.75 billion to $2.6 billion, including a $400 million greenshoe option, and priced it at a 55% conversion premium.

— Michael Saylor⚡️ (@saylor) November 20, 2024

MicroStrategy Boosts Convertible Notes Offering to $2.6 Billion

According to Michael Saylor, the executive chairman of MicroStrategy, the decision to increase the convertible notes offering is driven by high investor demand.

In a press release, the business intelligence firm announced that the notes would be sold in a private offering only to qualified institutional buyers and certain non-US persons in compliance with Securities Act regulations. Subject to the satisfaction of customary closing conditions, the offering is expected to close on November 21.

The notes, which will mature on December 1, 2029, will not bear regular interest, nor will the principal amount accumulate. At the company’s discretion, they will be convertible into cash, MicroStrategy’s class A common stock, or a combination of both.

MicroStrategy expects net proceeds of approximately $2.58 billion from the sale, or $2.97 billion, if the option for additional notes is exercised.

The firm shared that the proceeds from this offering will largely support its ongoing Bitcoin acquisition strategy and other corporate purposes. Earlier this week, the business intelligence company announced the acquisition of a whopping $4.6 billion worth of BTC.

Microstrategy Profits from Bitcoin Acquisitions

MicroStrategy’s latest move comes as Bitcoin soared past $94,500, propelling the company’s stock, MSTR, to a 15% gain.

Since adopting a Bitcoin treasury strategy in 2020, MicroStrategy has been relentlessly acquiring the leading cryptocurrency, a plan that has significantly boosted its market value.

The company has positioned itself as the largest corporate holder of Bitcoin. Based on current market prices, it has accumulated 331,200 BTC, valued at over $32.2 billion.

Following the boost in its convertible notes offering and Bitcoin’s recent price surge, MicroStrategy has entered the top 100 publicly traded companies in the U.S. by market capitalization.

At press time, Bitcoin exchanged hands at $97,300, representing a 4.96% increase in the last 24 hours.