On November 18, 2024, MicroStrategy, a leading business intelligence firm, announced an ambitious plan to raise $1.75 billion through a private offering of convertible senior notes. This decision coincides with their acquisition of $4.6 billion worth of Bitcoin, reinforcing their status as a major player in the cryptocurrency market.
The funding will be primarily used for additional Bitcoin purchases but will also support general corporate purposes, signifying MicroStrategy’s ongoing commitment to bolstering its cryptocurrency portfolio. In their official statement, the company outlined that the convertible senior notes will mature on December 1, 2029, and are structured to attract institutional buyers in compliance with Rule 144A and Regulation S under the Securities Act.
Among the notable features of this offering is the initial option allowing purchasers to acquire an additional $250 million in aggregate principal. The recent acquisition of 51,780 Bitcoin at an average price of $88,627 has doubled MicroStrategy’s total Bitcoin investment to approximately $16.5 billion. With this latest buy, the company’s total Bitcoin holdings now stand at 331,200, which equates to about 1.57% of the total Bitcoin supply.
Executive Chairman Michael Saylor shared on X, the company’s proactive approach in expanding its Bitcoin assets despite market fluctuations. As of now, MicroStrategy’s average purchase price per Bitcoin is around $49,847, which places them approximately 47% below Bitcoin’s all-time high price. This strategic investment has proven lucrative, yielding an unrealized profit of up to $13 billion since they first began acquiring Bitcoin in 2020.
As MicroStrategy continues to navigate the volatile landscape of cryptocurrency, its extensive investments serve as a testament to the growing acceptance and integration of digital currencies in mainstream finance. The upcoming online presentation on November 19 will further elaborate on the notes offering and the company’s future direction in the world of Bitcoin investment.
