MicroStrategy Increases Convertible Bonds Offering to $2.6B to Buy More Bitcoin

The business intelligence firm with a huge appetite for Bitcoin, has made notable adjustments in its $1.75 billion notes offering.

Business intelligence firm MicroStrategy has adjusted its $1.75 billion notes offering to increase its capacity for purchasing Bitcoin.

According to a post on X, MicroStrategy has increased its initial convertible bonds offering from $1.75 billion to $2.6 billion.

The company's goal is to sell convertible senior notes to investors, which will mature in five years' time, in 2029.

MicroStrategy is planning to sell the notes only to qualified institutional buyers via a private offering. Sales of the offered notes will close on November 21, 2024.

The notes, which will mature on December 1, 2029, will not bear regular interest, nor will the principal amount accumulate.

This move aligns with Michael Saylor's strategy of aggressively leveraging low-interest debt to accumulate Bitcoin.

The company's approach of issuing bonds at a 0% interest rate and high conversion premium reduces financial risk, favoring MicroStrategy's long-term Bitcoin plans.

MicroStrategy has been accumulating Bitcoin since 2024, with a current total holding of 331,200 BTC, valued at around $31.23 billion at today's market price.

The company's average purchase price for the last batch of 51,780 BTC is $88,627 per BTC, showing a profit of around $293.7 million at the current market price.

This profit taking and bullish confidence in Bitcoin's continued price increase are fueling MicroStrategy's aggressive accumulation move.

The company now controls about 1.6% of Bitcoin's total circulating supply.

A Japanese investment firm is also following MicroStrategy's footsteps by increasing its Bitcoin holdings.

Tokyo-based Metaplanet began accumulating Bitcoin in May 2024 and now holds over 1,000 BTC.

The firm's decision was largely influenced by the poorly performing Japanese Yen, leading Metaplant to embrace Bitcoin as a hedge against the declining fiat currency and focusing on BTC as a long-term asset.

With the growing institutional interest in Bitcoin and exposure through exchange-traded funds (ETFs), market watchers believe that more firms may adopt MicroStrategy's approach, with Metaplanet being one of many to come.