MicroStrategy Increases Convertible Notes Offering to $2.6 Billion for Bitcoin Purchases

MicroStrategy has increased the size of its convertible senior notes offering from $1.75 billion to $2.6 billion, according to a recent press release.

The company, which is led by Bitcoin advocate Michael Saylor, will use the funds raised from this offering to buy more Bitcoin and for general corporate purposes. The sale, which is expected to close on November 21, 2024, will be made to qualified institutional buyers and certain non-U.S. investors.

The notes, which are due in 2029, will not bear regular interest and will be convertible into cash or shares of MicroStrategy’s Class A common stock.

The initial conversion price is set at approximately $672 per share, which represents a premium of about 55% over the stock’s price from November 19, 2024.

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MicroStrategy has also granted an option to the initial purchasers of the notes to buy up to an additional $400 million in notes.

The company plans to use the funds for its Bitcoin acquisitions, which have been a major part of its strategy under Saylor’s leadership. This latest offering comes after MicroStrategy’s significant Bitcoin purchase of over $4.6 billion in one week earlier this month.

On a seperate note, Bitcoin’s price just hit a new all-time high of over $94,200.

Kosta Gushterov