Following its substantial $4.6 billion Bitcoin purchase, MicroStrategy, led by founder and chairman Michael Saylor, has announced plans to further bolster its Bitcoin reserves. The company intends to raise $1.75 billion through the issuance of convertible senior notes, primarily to acquire more Bitcoin and support general business operations.
Zero-Coupon Convertible Notes
The proposed notes will be zero-coupon convertibles, meaning they won't accrue annual interest. Instead, they will mature in 2029 and convert into MicroStrategy stock, offered at a discounted rate. While specific details on asset maturation and redemption rights remain undisclosed, this initiative underscores the company’s steadfast commitment to its Bitcoin-focused strategy.
In a statement, MicroStrategy confirmed, “The net proceeds from this offering will be used to acquire additional Bitcoin and for general corporate purposes.”
Aggressive Bitcoin Acquisitions
This fundraising effort follows a series of high-value Bitcoin purchases by the company. On the day of the announcement, MicroStrategy reported a $4.6 billion Bitcoin acquisition, and just a week earlier, it had invested over $2 billion in additional BTC. These moves further solidify MicroStrategy’s position as the largest corporate holder of Bitcoin globally.
Michael Saylor’s Webinar
Michael Saylor also announced a webinar for Tuesday, November 19, to provide more details about the offering. The session, open to investors and stakeholders, will address remaining questions about the initiative and outline the company’s strategic direction.
With these developments, MicroStrategy continues to pioneer corporate adoption of Bitcoin, reflecting its long-term confidence in the cryptocurrency’s potential.