MicroStrategy, founded by Michael Saylor, announced plans to issue $1.75 billion in convertible notes to acquire additional Bitcoins and support general operations.
Zero-Coupon Notes
These senior notes will be offered as zero-coupon convertibles, meaning they won’t carry an annual interest rate. Instead, they will mature into MicroStrategy stock by 2029, offered at a discounted price. While specific terms regarding asset maturation and MicroStrategy’s rights to redeem the notes for cash remain undisclosed, the move highlights the company’s uncompromising commitment to its Bitcoin-first strategy.
MicroStrategy’s Recent Acquisitions
This fundraising initiative follows a burst of Bitcoin acquisitions by MicroStrategy. On the same day as the announcement, the company reported a $4.6 billion Bitcoin purchase. Just a week prior, it had invested over $2 billion in additional BTC. These aggressive buying sprees have solidified MicroStrategy's position as the world’s largest corporate Bitcoin holder.
Michael Saylor’s Webinar
Additionally, Michael Saylor announced a webinar scheduled for Tuesday, November 19, to provide further insights into the offering. Open to investors and stakeholders, the session will address unanswered questions, including specific terms of the private offering and strategic plans moving forward.
MicroStrategy's plans to acquire more Bitcoin through the issuance of convertible notes highlight its continued investment strategy in cryptocurrency. The upcoming event with Michael Saylor may shed light on the company's next steps.
