Key Points
- MicroStrategy increases its private offering of convertible senior notes to $1.75 billion for future Bitcoin purchases.
- The company announces the acquisition of $4.6 billion worth of Bitcoin on the same day.
MicroStrategy has revealed plans to boost its private offering of convertible senior notes to a staggering $1.75 billion. These funds will be used to procure more Bitcoin in the future through private offerings that are open to institutional buyers. The convertible senior note is expected to mature by December 1, 2029.
The notes are available to U.S. buyers under Rule 144A of the Securities Act, as well as to certain non-U.S. buyers under Regulation S of the same act. Beyond Bitcoin acquisition, the raised funds are also intended for general corporate purposes.
Additional Details of the Offering
Initial purchasers of the notes will have the option to buy an additional $250 million aggregate principal amount. The offering of these notes by MicroStrategy is scheduled for November 19, through a video webinar. The company has also made provisions for the notes to be converted into their Class A common stock, cash, or a combination of both. The last time similar notes were offered was on September 20, 2024.
MicroStrategy’s Bitcoin Acquisition
On the same day, MicroStrategy’s Executive Chairman Michael Saylor announced that the company had acquired 51,780 Bitcoin, equivalent to $4.6 billion. The average price of the Bitcoin was $88,627. This acquisition effectively doubles their previous purchase, bringing their total Bitcoin spend to $16.5 billion. As of November 17, the company holds 331,200 Bitcoin, which equates to 1.57% of the total Bitcoin supply.
MicroStrategy’s average Bitcoin price now sits at around $49,847, which is 47% below Bitcoin’s all-time high of $93,477. The company also boasts an unrealized profit of up to $13 billion. Since MicroStrategy, based in Tysons Corner, Virginia, first announced its Bitcoin acquisition in 2020, its share price has skyrocketed by 2,400% from $15 to $384.
