MicroStrategy to Buy Even More Bitcoin, Announces $1.75 Billion Fundraiser

MicroStrategy Founder Michael Saylor announced the firm would offer $1.75 billion in zero-coupon convertible notes to purchase more Bitcoin. Earlier today, MicroStrategy bought over $4.6 billion in BTC.

MicroStrategy’s Bitcoin-first policy has paid off handsomely in the post-Trump bull market, with the company making record-breaking investments in BTC.

Now, MicroStrategy is set to announce a private offering of $1.75 billion in zero-coupon convertible notes to further bolster its Bitcoin holdings.

The convertible senior notes will be offered as zero-coupon convertibles, meaning they will pay no interest and will instead mature into MicroStrategy stock in 2029. These notes will be offered at a discount to the prevailing market price.

“MicroStrategy intends to use the net proceeds from this offering to acquire additional bitcoin and for general corporate purposes,” the company said in a press release.

The offering comes on the same day that MicroStrategy disclosed that it had purchased $4.6 billion in BTC. One week prior, the company also allocated slightly over $2 billion to Bitcoin purchases.

These purchases make MicroStrategy the world’s largest Bitcoin holder by a significant margin and continue its staunch Bitcoin-first policy.

MicroStrategy’s stock has ballooned since adopting this policy, outperforming Bitcoin with a 24-year high in October. Its stock prices have increased by over 460% in a year and nearly 75% this month alone.

The company’s value is closely tied to the performance of Bitcoin, but they do not always align directly. In any event, MicroStrategy hit these highs before Trump’s re-election, and the subsequent bull market has sent them soaring.

Some of the finer details around this private offering were not explicitly stated in the press release, such as the exact terms of asset maturation and MicroStrategy’s right to redeem the notes for cash.

However, Saylor also announced a Webinar to discuss the offering on Tuesday, November 19, which will be open to Qualified Institutional Buyers—the same group that can purchase the notes.

As long as the bull market continues, there’s no clear limit to MicroStrategy’s Bitcoin appetite. However, there is a limited supply of bitcoins, and ETF issuers have already outpaced miners’ production levels. These massive purchases are not sustainable forever, especially with such a buyer’s market, but Saylor will likely continue as long as possible.