MicroStrategy Upsizes Convertible Note Offering to $2.6 Billion to Acquire More Bitcoin

MicroStrategy, the largest corporate holder of Bitcoin, has increased the size of its convertible senior note offering from $1.75 billion to $2.6 billion. The company plans to use the proceeds from the offering to buy additional Bitcoin, further expanding its holdings in the leading cryptocurrency.

In a recent announcement, MicroStrategy revealed that it would be issuing 0% convertible bonds, which are due in 2029. The offering also includes a $400 million greenshoe option, allowing initial buyers to purchase an additional $400 million worth of the notes. This option will remain available for three days following the initial issuance.

The bonds will be convertible into cash, shares of MicroStrategy’s Class A common stock, or a combination of both at the company’s discretion. The move comes as the demand for the offering exceeded expectations, according to MicroStrategy’s founder, Michael Saylor.

MicroStrategy’s Bitcoin Buying Spree Continues

MicroStrategy, which began acquiring Bitcoin in 2020, has been aggressively adding to its holdings. The company now owns 331,200 BTC, having spent approximately $16.5 billion to acquire these assets at an average price of $49,874 per Bitcoin. The most recent purchase saw the company acquire 51,780 BTC for $4.6 billion at an average price of $88,627 per coin. As Bitcoin’s price has risen significantly since the company first adopted this strategy, MicroStrategy has seen substantial gains.

Bitcoin recently reached new all-time highs, trading around $93,915, with a peak of $94,891. This surge in Bitcoin’s price has bolstered the company’s investment strategy and further solidified MicroStrategy’s position as the largest corporate Bitcoin holder.

MicroStrategy Stock Outperforming Tesla and Nvidia

MicroStrategy’s commitment to Bitcoin has also paid off in the stock market. The company’s stock (MSTR) has seen a massive surge, gaining 620% year-to-date and 871% over the past year. Over the last five years, the stock has increased by a staggering 3,159%, outpacing the performance of major tech companies like Tesla and Nvidia.

In fact, MicroStrategy’s stock has become the most traded stock in the U.S. in recent times, surpassing both Tesla and Nvidia in volume. Bloomberg’s senior ETF analyst, Eric Balchunas, highlighted this achievement on X, noting that it’s been years since a stock has traded more than both of these tech giants. The surge in trading volume for MicroStrategy stock is a testament to the growing interest in the company’s Bitcoin strategy.

A Trendsetter in Bitcoin Adoption

MicroStrategy’s success has inspired other institutions to follow suit and add Bitcoin to their balance sheets as a treasury reserve asset. The company’s bold Bitcoin strategy has become a model for other corporate investors looking to hedge against inflation and diversify their portfolios with digital assets.

As Bitcoin continues to make headlines with its rising price and mainstream adoption, MicroStrategy’s position as a pioneer in corporate Bitcoin holdings looks increasingly prescient. With its ongoing commitment to acquiring more Bitcoin, the company is solidifying its reputation as a major player in the cryptocurrency space.