MicroStrategy, the largest corporate Bitcoin holder, plans to raise $1.75 billion through the issuance of convertible bonds for more Bitcoin purchases.
Details of Convertible Bond Offering
MicroStrategy announced the issuance of senior convertible notes worth $1.75 billion with a 0% interest rate. The company intends to use the net proceeds to acquire additional Bitcoin and for general corporate purposes. These notes will not pay regular interest to bondholders but will be sold at a discount, maturing to face value by the 2029 maturity date if not converted. Being 'senior,' these notes have priority over common stock in cases of bankruptcy or liquidation.
MicroStrategy's Current Bitcoin Investment
If MicroStrategy utilizes the entire $1.75 billion to buy Bitcoin, it can acquire an additional 19,065 BTC at current prices. According to BitcoinTreasuries, the company currently holds 331,200 BTC, worth over $30.3 billion. This year alone, it has acquired 142,050 Bitcoin, valued at approximately $12.8 billion. Michael Saylor's strategy has resulted in a 133% increase, with an average purchase price of $39,292 per BTC.
Market and Future Company Plans
On November 18, MicroStrategy's shares jumped nearly 13% to close at a record high of $374.80, though they dipped 0.7% in after-hours trading. Last month, the company announced its ambitious '21/21' plan to raise $42 billion over three years — $21 billion in equity and $21 billion in fixed-income securities — to continue accumulating Bitcoin. Currently, Bitcoin is priced at $91,653, just under 2% below its all-time high of $93,477 achieved on November 13, according to CoinGecko.
MicroStrategy's strategy to raise funds via convertible bonds highlights its determination to continue investing in Bitcoin, despite market fluctuations and substantial previous investments.
