MicroStrategy to Raise $1.75 Billion to Expand Bitcoin Holdings
After spending $4.6 billion to buy Bitcoin (BTC), microstrategic Michael Saylor, founder and chairman of MSTR, announced that the company plans to acquire more Bitcoin through the issuance of 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 purchase more Bitcoin and support general operations.
zero coupon note
The senior notes will be issued as zero-coupon convertible bonds, meaning they will not accrue annual interest. Instead, they will mature into MicroStrategy stock in 2029 and be sold at a discount.
While specific terms regarding the maturity of the assets and MicroStrategy’s right to redeem the notes for cash have not been disclosed, the move highlights the company’s strong commitment to its Bitcoin-first strategy. MSTR further stated, “We intend to use the net proceeds from this offering to purchase additional Bitcoin and for general corporate purposes.”
Looking at MicroStrategy’s Bitcoin buying strategy, the recent victory of crypto-supporting Donald Trump appears to have strengthened its strategy.
MicroStrategy’s recent acquisitions
The fundraise comes on the heels of MicroStrategy’s massive Bitcoin acquisition. On the same day as the announcement, the company reported buying $4.6 billion in Bitcoin. Just a week ago, it invested over $2 billion in additional BTC. These aggressive buying sprees solidify MicroStrategy’s position as the world’s largest corporate Bitcoin holder.
Michael Thaler’s Webinar
Additionally, Michael Saylor announced a webinar scheduled for Tuesday, November 19th to provide further insight into the product. The conference, which is open to investors and stakeholders, will address unanswered questions, including the specific terms of the private placement offering and future strategic plans.
