MicroStrategy has completed a $3 billion issuance of 0% convertible senior notes, a significant step in its quest to buy additional Bitcoin. The business intends to use the proceeds from this sale to enhance its Bitcoin holdings, in line with its overall objective of raising $42 billion over the next three years. This strategy focuses on purchasing Bitcoin as part of a long-term plan to establish a greater cryptocurrency reserve.
The convertible notes carry a 55% premium and a strike price of about $672 per share. If not converted by the maturity date of December 2029, bondholders will receive a redemption at face value. MicroStrategy’s offering also prioritizes these bonds over common shares in the event of liquidation.
Should the corporation allocate the entire $3 billion to Bitcoin acquisitions, it could potentially acquire approximately 30,600 additional Bitcoin. This move comes after the business announced a similar $2.6 billion offering earlier this week, both of which are part of MicroStrategy’s strategy to considerably expand its Bitcoin portfolio.
Despite the euphoria surrounding Bitcoin, MicroStrategy’s shares fell by more than 25% on November 21. This decrease occurred after Citron Research, a famous short seller, reported that it had acquired a short position in the stock, citing worries about its strong link with Bitcoin’s erratic price changes. Despite this recent downturn, MicroStrategy’s stock has still fared admirably, gaining by 480% in 2024 alone.
The corporation now owns over 331,000 bitcoins, worth more than $32 billion, making it the greatest bitcoin holder among publicly traded companies. However, as Bitcoin approaches $100,000, the company’s aggressive Bitcoin strategy remains a topic of concern among investors and experts alike.
