MicroStrategy Raises $1.75B Through Convertible Senior Notes Offering to Acquire More Bitcoin

MicroStrategy announced it would raise the private offering of convertible senior notes to $1.75 billion, as they acquire $4.6 billion Bitcoin to holdings

MicroStrategy (Nasdaq: MSTR) announced it would raise the private offering of convertible senior notes to $1.75 billion, as they acquire $4.6 billion Bitcoin to holdings on the same day.

According to the company’s official statement on Nov. 18, MicroStrategy is raising funding to buy more Bitcoin in the future through private offerings that qualify as institutional buyers. The number of offers is up to $1.75 billion with a convertible senior note due on December 1, 2029.

The notes were sold for U.S. buyers with Rule 144A under the Securities Act, and available for certain non-U.S. buyers with Regulation S under the same act. Additionally, the funding is not only used for acquiring more Bitcoin but also uses for general corporate purposes.

Initial purchasers of the notes would have an option to purchase an additional $250 million aggregate principal amount of the notes. MicroStrategy would propose the notes offering on Nov. 19 on video webinar.

MicroStrategy allowed the notes to be converted into their class A common stock, cash, and a combination of both. The latest time they offered the same notes was on September 20, 2024.

MicroStrategy acquires $4.6 billion Bitcoin on the same day

Executive chairman Michael Saylor in his X post on Nov. 18, announced the company acquired 51,780 Bitcoin, or equivalent to $4.6 billion. The average price of the Bitcoin is $88,627.

This acquisition doubled the previous buying and now they spend $16.5 billion in Bitcoin. As of Nov. 17, the company’s acquires 331,200 Bitcoin, or equal to 1,57% of the total Bitcoin supply.

MicroStrategy’s average Bitcoin price now is around $49,847 or 47% below Bitcoin’s all-time high of $93,477. They also have an unrealized profit of up to $13 billion.

Since the company based in Tysons Corner, Virginia announced the Bitcoin acquisition for the first time in 2020, the share has risen to 2,400% from $15 to $384 today.