MicroStrategy Expands Private Offering of Convertible Notes to $2.6 Billion

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In the latest development, MicroStrategy has disclosed that it has upsized and priced its previously announced private offering of convertible senior notes. Initially set at $1.75 billion, the offering has now been increased to $2.6 billion in 0% convertible senior notes due in 2029. Additionally, the company has granted initial purchasers an option to buy up to $400 million more in notes within three days of issuance. The offering is expected to close on November 21, 2024, subject to satisfaction of customary closing conditions.

The company, which purchased $4.6 billion worth of BTC last week, plans to use a major portion of the funds from the new bond issuance to buy more BTC. Notably, this news has further fortified Bitcoin, potentially breaching the 100,000 level in the upcoming days. 

Notably, the $2.6 billion offer is meant for qualified institutional buyers and is expected to close on November 21, 2024, with net proceeds estimated at approximately $2.58 billion, or $2.97 billion if the option for additional notes is exercised in full. MicroStrategy plans to use the proceeds to purchase more Bitcoin and for general corporate purposes.

MicroStrategy Incorporated has been making significant strides in its Bitcoin investment strategy. It recently acquired an additional 51,780 Bitcoins, funded by a stock offering that generated around $4.6 billion, increasing its total Bitcoin holdings to approximately 331,200. 

The firm also entered the top 100 U.S. publicly traded companies, which is currently in the 97th place. The milestone follows an impressive 12% surge in its stock price, closing Tuesday at $430 per share after it crossed the $400 mark earlier in the day. Notably, its exceptional performance overlapped with Bitcoin hitting new all-time highs of over $94,000. 

The cryptocurrency market remains dynamic today as Bitcoin trades steadily at $94,690, up over 2% in the last 24 hours. Analysts expect bitcoin to reach $100,000 before the end of the month. Positive Bitcoin ETF inflows are also supporting the rally. On Nov. 19, the US spot Bitcoin ETFs recorded over $816 million worth of cumulative net inflows.