MicroStrategy Expands Private Offering of Convertible Notes to $2.6 Billion
In its latest development, MicroStrategy has disclosed The company has expanded and priced its previously announced private placement offering of convertible senior notes. The offering, initially pegged at $1.75 billion but now increased to $2.6 billion, will consist of 0% convertible senior notes due 2029. In addition, the company has granted initial purchasers the option to purchase up to an additional $400 million of notes within three days of issuance. The offering is expected to close on November 21, 2024, subject to the satisfaction of customary closing conditions.
The company bought $4.6 billion worth of Bitcoin last week and plans to use most of the proceeds from the new bond issue to buy more Bitcoin. It is worth noting that this news further strengthens the trend of Bitcoin, and Bitcoin may break through the 100,000 level in the coming days.
Notably, the $2.6 billion offer is open to qualified institutional buyers and is expected to close on November 21, 2024, with net proceeds estimated to be approximately $2.58 billion, if the option for additional notes is exercised in full. Net income was approximately $2.97 billion. MicroStrategy plans to use the proceeds to purchase more Bitcoin and for general corporate purposes.
MicroStrategy’s latest achievements
MicroStrategy Incorporated’s Bitcoin investment strategy has been making significant progress. Recently, the company raised approximately $4.6 billion through a stock offering and purchased an additional 51,780 Bitcoins, increasing its total Bitcoin holdings to approximately 331,200 Bitcoins.
The company has also entered the top 100 public companies in the United States and is currently ranked 97th. The company’s shares jumped 12% on Tuesday to close at $430 a share, after crossing the $400 mark earlier in the day. Notably, its outstanding performance coincided with Bitcoin’s all-time high of over $94,000.
Cryptocurrency markets remain active today, with Bitcoin trading steady at $94,690, up more than 2% in the past 24 hours. Analysts expect Bitcoin to reach $100,000 by the end of this month. Positive inflows into Bitcoin ETFs also supported the rally. On November 19, the cumulative net inflow of the US spot Bitcoin ETF exceeded US$816 million.
