MicroStrategy’s thirst for Bitcoin cannot be quenched, despite holding over $31 billion worth.
Barely two days after announcing a plan to sell $1.75 billion worth of convertible notes as a means to buy up more of the world’s top cryptocurrency, the firm said on Wednesday that it has expanded that offering to $2.6 billion worth of notes.
Michael Saylor, MicroStrategy’s co-founder and executive chairman, said the move was made due to “high demand” for the new notes over the last 48 hours.
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
As with those initially offered on Monday, the additional zero-interest senior notes announced today will mature in 2029 and are available only to qualified institutional buyers. They will be eventually redeemable for cash, MicroStrategy stock, or a mix of both.
That’s a mighty tempting offer for many Wall Street investors, given the recent, explosive growth of MicroStrategy’s stock. The company, which owns over 331,000 BTC—1.58% of the token’s total possible supply—has seen its stock balloon by over 870% in the last year, in the wake of Bitcoin’s surge. Earlier this month, the stock reached an all-time high.
If MicroStrategy manages to raise another $2.6 billion to buy up more Bitcoin, it would be able to purchase some 27,450 BTC at current prices.
While MicroStrategy once billed itself as a business intelligence and software company, the company’s bold Bitcoin wager has upended not just its value to shareholders, but also the way it now sees itself: as the “world’s first and largest Bitcoin treasury company.”
Edited by Andrew Hayward
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Source: https://decrypt.co/292572/microstrategy-boosts-convertible-notes-offering-to-2-6-billion-to-buy-even-more-bitcoin
