MicroStrategy Ups Latest Convertible Note Offering To $2.6 Billion For Additional Bitcoin Purchases

Nasdaq-listed software firm MicroStrategy said on Wednesday that it had increased its latest zero-interest convertible senior notes offering to $2.6 billion, up from the previously announced $1.75 billion. The net proceeds of the sale will be used to buy an additional Bitcoin batch. 

MicroStrategy Raises Note Sales By $850 Million

Michael Saylor’s MicroStrategy cannot get enough of Bitcoin despite holding more than $31 billion of the world’s largest cryptocurrency.

Barely two days after disclosing a plan to sell $1.75 billion worth of convertible notes as a means to purchase additional BTC, the self-styled Bitcoin development company announced on Nov. 20 that it had increased that offering to $2.6 billion worth of notes. 

Subject to market conditions, the senior notes, maturing in 2029, will be issued to qualified institutional investors via a private offering. They are unsecured and are convertible into cash, MicroStrategy class A common stock, or a mix of both.

The founder of the Tysons Corner, Virginia-based company, Michael Saylor, posited that the move was made owing to “high demand” for the new notes over the past 48 hours.

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 also offered the initial purchasers of the notes a three-day option beginning from the issuance date, to purchase up to an additional $400 million in aggregate principal amount of the notes, with the offering expected to close on Nov. 21.

MicroStrategy’s Bitcoin Buying Spree

Earlier this week, MicroStrategy announced that it had bought another 51,780 BTC for roughly $4.6 billion at an average price of $88,627 per coin between Nov. 11 and Nov. 17. Notably, this was MicroStrategy’s largest BTC purchase on record.

The firm now holds an eye-watering 331,200 BTC. MicroStrategy’s stash was acquired at an aggregate cost of $16.5 billion. If it successfully raises another $2.6 billion to scoop up more BTC, it could buy some 27,450 Bitcoin at current market prices.

The company’s executive chairman, Saylor, is devoted to the maiden crypto. This explains why MicroStrategy has continued to buy Bitcoin amid its recent post-election pump despite already being the publicly traded company with the biggest Bitcoin stash — roughly 1.58% of BTC’s total supply.