The software company #MicroStrategy led by CEO Michael Saylor completed a 3 billion USD fundraising round in just 3 days to continue its aggressive investment strategy in Bitcoin.
Details of the Fundraising Round
On November 18, 2024, MicroStrategy announced plans to issue debt bonds maturing in 2029, initially aiming to raise 1.75 billion USD.
However, the offering terms allow investors to opt for additional bond purchases, raising the total fundraising amount to a maximum of 3 billion USD.
Notably, these bonds do not pay interest but can be converted into MicroStrategy stock at a price 55% higher than the current market price.
According to the official announcement on November 22, all investors opted for additional purchase rights, helping the company achieve its maximum fundraising goal.
Capital Utilization Plan
MicroStrategy stated that the funds raised will be used for two main purposes:
Purchase additional $BTC – continue to maintain the 'all-in' strategy on the largest cryptocurrency in the world.
Cover the company's operating expenses.
Just earlier this week, MicroStrategy executed its latest Bitcoin purchase deal worth 4.6 billion USD, raising the total amount of Bitcoin held to 331,200 BTC, equivalent to 32.8 billion USD at current market value. On average, the company has invested 16 billion USD to purchase this amount of Bitcoin and is currently nearly doubling its invested capital.
21/21 Plan and Impressive Growth
In October 2024, MicroStrategy announced the 21/21 Plan, with the ambition to raise 42 billion USD within 3 years to focus entirely on Bitcoin. Since then, the company has:
Executed 2 Bitcoin purchase transactions totaling 6.6 billion USD.
Completed the latest fundraising round of 3 billion USD.
MicroStrategy's MSTR stock also showed strong growth in November, rising from 230 USD to a record 543 USD on November 21, surpassing the historical peak that existed since 2000.
Controversy and Short-Selling Moves
However, not everyone is optimistic about MicroStrategy's strategy:
Citron Research, a well-known investment fund with short-selling activities, believes that the value of MSTR stock has 'strayed too far' from the fundamentals of Bitcoin and announced the establishment of a short position.
As a result, MSTR stock fell 16% in trading on November 21, although it still reported a trading volume of 50 billion USD, contributing to bringing the total volume of crypto products and related stocks in the US to a record 70 billion USD on that day.
Significant Impact on the Market
MicroStrategy's continued massive Bitcoin purchases are reinforcing confidence in this cryptocurrency, especially in the context of a strong crypto market recovery. Bitcoin is currently priced nearly 99,000 USD, with strong participation from major financial institutions through products like Bitcoin ETFs.
MicroStrategy, with its bold strategy, continues to be a pioneer in promoting Bitcoin adoption at the institutional level.
