MicroStrategy Ups Bitcoin Bet: $2.6B Convertible Notes Sale Amid Soaring BTC Prices
MicroStrategy, the business intelligence firm led by Michael Saylor, is making another bold move to expand its Bitcoin holdings, citing "high demand." The company has increased its recent offering of convertible notes from $1.75 billion to $2.6 billion, with the proceeds earmarked for acquiring more Bitcoin and supporting general corporate needs.
Given high demand, we upsized our $MSTR offering of 0% convertible bonds due 2029 from $1.75 billion to $2.6 billion, including a $400 million greenshoe option, and priced it at a 55% conversion premium.
— Michael Saylor⚡️ (@saylor) November 20, 2024
The latest move comes as Bitcoin nears the $100,000 mark, with the cryptocurrency crossing the $97,000 mark on Thursday, buoyed by strong interest in Bitcoin ETF options trading, which launched earlier this week.
MicroStrategy acquired 51,780 BTC over the last week for a total cost of $4.6 billion. Its stash now totals 331,200 BTC, worth just under $30 billion, with a purchase price of about $16.5 billion.
Saylor, an outspoken Bitcoin advocate, has long believed that Bitcoin's value will continue to rise, with the $100,000 threshold potentially being reached before the year's end. His comments in a recent interview reflect his optimism, with Saylor even planning a "celebration" when the price hits the milestone.
MicroStrategy, which now holds approximately $40 billion worth of Bitcoin, has become a major force in the market. The firm’s market capitalization recently surpassed $100 billion, driven by its aggressive Bitcoin acquisition strategy.
This growth has made MicroStrategy the most traded stock in the U.S., surpassing Tesla and Nvidia in trading volume on Wednesday, with the last company to do so being GameStop, Bloomberg analyst Eric Balchunas noted.
Wow $MSTR is the most traded stock in America today.. to best $TSLA and $NVDA is crazy. It's been years since a stock has traded more than one of those two (it may have actually been $GME to last do it). It's also about double $SPY! Wild times.. pic.twitter.com/bUr8nycMX3
— Eric Balchunas (@EricBalchunas) November 20, 2024
This latest $2.6 billion convertible note issuance is just one aspect of MicroStrategy’s broader strategy to strengthen its position in the crypto market. As Bitcoin continues to soar, market analysts predict that other companies may follow MicroStrategy’s lead in using Bitcoin as a treasury reserve asset.
Saylor is set to pitch to Microsoft's board about investing in Bitcoin on 9 December at the tech giant's annual shareholders' meeting.
MSTR stock climbed another 10% on Wednesday to $473.83, and sits 3.23% higher in after-hours trading at $489.15. Its gains over the past month stand at 116.31%, compared to Bitcoin's gain of 43.87% over the same period.