MicroStrategy Unveils Plans to Raise $1.75B Through Private Offering of 0% Convertible Senior Notes to Bolster Bitcoin Holdings

Despite already holding the largest corporate Bitcoin reserve in the world, MicroStrategy's appetite for the leading cryptocurrency continues unabated.

Bitcoin-focused firm MicroStrategy is planning to raise $1.75 billion from qualified institutional investors and select non-U.S. buyers in a private offering of 0% convertible senior notes maturing in 2029, the company announced Monday.

The offering will also provide initial purchasers with the option to acquire an additional $250 million in notes within three days of issuance. These senior unsecured notes carry no regular interest and are set to mature on December 1, 2029.

The announcement coincides with news of the company’s latest Bitcoin acquisition. On Monday, MicroStrategy’s co-founder and executive chairman Michael Saylor revealed that between November 11 and 17, MicroStrategy purchased 51,780 BTC for approximately $4.6 billion at an average price of $88,627 per coin.

The purchase was financed through proceeds from the sale of shares, bringing the firm’s total Bitcoin reserves to 331,200 BTC, now worth roughly $29.7 billion at current market prices. The company’s cumulative spending on Bitcoin now exceeds $16.5 billion, with an average acquisition cost of $49,874 per coin.

The firm’s recent Bitcoin purchases have been notably profitable. According to a report by the company, from October 1 to November 17, the return on their Bitcoin holdings reached 20%, and since the start of 2024, that figure has approached 42%.

The firm’s bold strategy has positioned it as a standout among institutional players. Its Bitcoin holdings now exceed major corporations’ cash reserves, such as IBM and Nike, underscoring the firm’s unwavering commitment to cryptocurrency as a core asset.

Saylor has been vocal about his optimism for the world’s largest crypto asset. During a Monday podcast with entrepreneur Patrick Bet-David, he predicted Bitcoin’s market share of global wealth could grow from 0.1% to 7% in the next two decades. He said this could propel Bitcoin’s price to $13 million per coin by 2045.

“I think Bitcoin is going to grow from 0.1% of the money in the world to 7% of the money in the world over the next 21 years and of course you should just go long and keep buying it,” he explained. “In 21 years, it’s going to be at $13,000,000 a coin.”