MicroStrategy raises $2.97 billion through a convertible note offering to acquire more BTC

MicroStrategy has successfully completed its offering of 0% convertible senior notes, raising approximately $2.97 billion in net proceeds. The company announced on November 22 that it intends to use these proceeds to purchase additional Bitcoin, further solidifying its position as the largest corporate holder of the cryptocurrency.

The offering, which was initially set at $2.6 billion, ended up totaling $3 billion after an additional $400 million worth of notes were issued as part of a greenshoe option. The notes, due for maturity on December 1, 2029, were sold privately to institutional buyers under Rule 144A of the Securities Act of 1933. These buyers have the option to convert the notes into cash, shares of MicroStrategy’s Class A common stock, or a combination of both.

The conversion rate for the notes is set at 1.4872 shares per $1,000 principal, which values MicroStrategy’s stock at around $672.40 per share, offering a 55% premium compared to its current market price. Investors can convert the notes under specific conditions before June 1, 2029, and after that, conversions can occur at any time before the notes mature.

The high demand for the notes led MicroStrategy to increase the offering size from an initial $1.75 billion to $2.6 billion, contributing to a significant surge in its stock price. In fact, the company’s stock has risen 620% year-to-date and 871% over the past year, making it the “most traded stock in America” during this period.

With the recent purchase of 51,780 BTC, MicroStrategy now holds a total of 331,200 BTC, valued at more than $32.6 billion, especially with Bitcoin’s price recently surging past $99,000. The company continues to strengthen its commitment to Bitcoin as a core part of its strategy, further cementing its role as a major player in the cryptocurrency market.