MicroStrategy, the largest corporate holder of Bitcoin, is making waves again with its latest announcement. The company plans to raise $1.75 billion from senior convertible notes at a 0% interest rate to acquire additional bitcoin (BTC).
The company noted that it aims to allocate the net proceeds from this offering toward purchasing more BTC and addressing broader corporate needs.
The notes will be made available to individuals deemed eligible institutional investors under Rule 144A of the Securities Act and to specific international buyers through transactions conducted outside the United States by Securities Act regulation. The business intelligence giant’s 0% senior convertible notes indicate that it will not provide periodic interest payments to investors.
MicroStrategy to Raise More Cash
According to MicroStrategy, the offering depends on prevailing market dynamics and other factors, and there is no certainty about its timing, terms, or successful execution.
The firm also plans to provide initial buyers of the notes with a three-day window, starting from the issuance date, to acquire up to an additional $250 million in total principal value of the notes.
These convertible notes are issued at a reduced price and will reach their total face value upon maturity in 2029, provided they are not converted beforehand.
MicroStrategy Continues Shopping
If MicroStrategy allocated the entire $1.75 billion to purchasing bitcoin at current market rates, it could acquire approximately 19,065 BTC.
MicroStrategy, led by executive chairman Michael Saylor, has solidified its position as one of the largest corporate holders of Bitcoin. The company currently holds 331,200 bitcoin, valued at over $30.3 billion, after acquiring an additional $4.6 billion in BTC on November 18.
Similarly, on November 11, 2024, the business intelligence firm acquired approximately 27,200 bitcoins at a total cost of about $2.03 billion, with an average purchase price of roughly $74,463 per BTC, including fees and expenses.
This year, MicroStrategy has acquired approximately 142,050 bitcoins, which are worth approximately $12.8 billion based on current market prices. With BTC’s current performance, the firm’s bitcoin investment portfolio is anticipated to skyrocket.
CryptocurrenciesToWatch reported that Saylor aims to transform the firm into a trillion-dollar value and become the world’s leading Bitcoin bank. The company’s CEO plans to raise hundreds of billions through various financial instruments, including convertible notes and preferred stock, which will be used to purchase bitcoins. He predicts MicroStrategy’s value will skyrocket, dominating options and equity markets.
