MicroStrategy to Raise $1.75 Billion to Expand Bitcoin Holdings

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Following a significant $4.6 billion Bitcoin (BTC) purchase, MicroStrategy’s (MSTR) founder and chairman, Michael Saylor, announced that the firm plans to acquire more Bitcoin by offering convertible notes. According to a recent post on X (formerly Twitter), MSTR revealed plans to raise $1.75 billion through the issuance of convertible senior notes, primarily to acquire additional Bitcoin and support general operations.

Zero-Coupon Notes

These senior notes will be offered as zero-coupon convertibles, meaning they won’t carry an annual interest rate. Instead, they will mature into MicroStrategy stock by 2029, offered at a discounted price.

MicroStrategy Announces Proposed Private Offering of $1.75B of Convertible Senior Notes. $MSTR https://t.co/dBJMUvfjj1

— Michael Saylor (@saylor) November 18, 2024

While specific terms regarding asset maturation and MicroStrategy’s rights to redeem the notes for cash remain undisclosed, the move highlights the company’s uncompromising commitment to its Bitcoin-first strategy. MSTR further noted, “We intend to use the net proceeds from this offering to acquire additional Bitcoin and for general corporate purposes.”

Looking at MicroStrategy’s Bitcoin buying strategy, it seems that pro-crypto Donald Trump’s recent victory has turbocharged its approach.

MicroStrategy’s Recent Acquisitions

This fundraising initiative follows a burst of Bitcoin acquisitions by MicroStrategy. On the same day as the announcement, the company reported a $4.6 billion Bitcoin purchase. Just a week prior, it had invested over $2 billion in additional BTC. These aggressive buying sprees have solidified MicroStrategy’s position as the world’s largest corporate Bitcoin holder.

Michael Saylor’s Webinar

Additionally, Michael Saylor announced a webinar scheduled for Tuesday, November 19, to provide further insights into the offering. Open to investors and stakeholders, the session will address unanswered questions, including specific terms of the private offering and strategic plans moving forward.