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MicroStrategy Upsizes $2.6B Note to Expand Bitcoin Holdings

Crypto

Business Honor
22 November, 2024

MicroStrategy raises $2.6 billion to boost Bitcoin holdings, capitalizing on cryptocurrency’s price surge

MicroStrategy has significantly increased the size of its convertible note offering to $2.6 billion, up from the initially announced $1.75 billion. In a continuation of its Bitcoin acquisition strategy, MicroStrategy uses the proceeds to enhance its Bitcoin holdings. The notes being offered in this deal are scheduled to close on November 21. The targeted investors in this deal are institutional investors. Zero-interest notes have a maturity date of 2029.

Expansion is also fueled by the recent surge of bitcoin. The cryptocurrency recently reached a new all-time high of $96,923 and stood at 37% increase in just one month. Many analysts already predict that Bitcoin will hit $100,000 by the end of November, while some other experts forecast an additional 14.7%. Headed by CEO Michael Saylor, the firm has exploited this momentum and now owns more than 331,000 BTC, worth approximately $31 billion, or about 1.58% of Bitcoin's total supply.

The company's share price has surged, gaining more than 870% over the past year, following the strong increase in Bitcoin. MicroStrategy's Bitcoin acquisition approach has also placed it at the top among corporate holders of Bitcoin.

The convertible notes provided for investors would mature in 2029 and be convertible into cash, MicroStrategy stocks, or a combination of both. In continuing to strengthen the bitcoin portfolio and in its aim to further shore up the balance sheet, MicroStrategy pursues this newest capital raise.

This latest offering comes at a time when institutional interest in Bitcoin and digital assets continues to gain traction, especially with Bitcoin's pricing surge as it brought renewed optimism to the crypto market. And as MicroStrategy ventures forth, its strategy of acquiring Bitcoin continues to keep the company at the forefront of the cryptocurrency space, placed to post sustainable success.