The firm intends to use the proceeds to acquire additional bitcoin and for general corporate use.
What’s the Scoop?
- Big Move: MicroStrategy is upping the size of its latest convertible note offering by nearly 50%, increasing borrowings from $1.75B to $2.6B.
- Convertible Notes: This set of convertible notes matures in 2029 and carries a 0% interest rate. MicroStrategy's recently announced 21/21 Plan sees the firm issuing a total $21B in convertible bonds and $21B in stock over the next three years to buy even more BTC.
- Picking Up Traction: MicroStrategy ranks as the most actively traded stock in the world today and had generated 57M in share trading volumes as of the publication of this article, 30 minutes prior to the New York stock market close.
Bankless Take:
MicroStrategy continues to double down on its winning Bitcoin strategy; share prices have surged 117% in the past month and are up 521% year-to-date. While the firm presents itself as a convicted long-term holder, the crypto market is notoriously volatile, and a significant downturn could send both bitcoin prices and MSTR stock into a tailspin.
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