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MicroStrategy has completed a $3 billion offering of 0% convertible senior notes due in December 2029, with plans to use a portion or all of the proceeds to buy more Bitcoin.
The business intelligence firm <a data-ct-non-breakable="null" href="https://www.microstrategy.com/press/microstrategy-completes-3-billion-offering-of-convertible-senior-notes-due-2029-at-0-coupon-and-55-conversion-premium_11-21-2024" rel="null" target="null" text="null" title="null">announced</a> the completion as its shares retraced more than 25% on Nov. 21, Google Finance <a data-ct-non-breakable="null" href="https://www.google.com/finance/quote/MSTR:NASDAQ" rel="null" target="null" text="null" title="null">data</a> shows.
The convertible senior notes came at a 55% premium with an implied strike price of around $672 — a predetermined price at which an option holder can buy or sell MicroStrategy’s class A common stock.
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 <img alt="Stocks, Trading, MicroStrategy, Michael Saylor" src="https://s3.cointelegraph.com/uploads/2024-11/01935127-4d2e-736d-a30a-8ac92333f2d1" title="">
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 Source: <a data-ct-non-breakable="null" href="https://x.com/saylor/status/1859704181910868139" rel="null" target="null" text="null" title="https://x.com/saylor/status/1859704181910868139">Michael Saylor</a>
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The 0% senior convertible note means it will not pay regular interest to bondholders. These convertibles are sold at a discount and will instead mature to face value if they are not converted prior to the maturity date.
They’re also “senior” to common stock in the sense that holders have priority in the event of bankruptcy or liquidation.
MicroStrategy could buy about 30,600 Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) if it were to spend the entire $3 billion on the cryptocurrency.
The $3 billion offering follows MicroStrategy’s Nov. 18 announcement to <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/microstrategy-buy-bitcoin-senior-convertible-notes" rel="null" target="null" text="null" title="null">raise $1.75 billion</a> at 0% interest, which was then <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/micro-strategy-to-sell-2-6-b-in-notes-increasing-from-1-75-b-to-fund-bitcoin-purchases" rel="null" target="null" text="null" title="null">increased to $2.6 billion</a> on Nov. 20.
The offerings are part of MicroStrategy’s intent to raise<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/microstrategy-42b-capital-bitcoin-purchase-michael-saylor" rel="null" target="null" text="null" title="null"> $42 billion in the next three years</a> to stack more Bitcoin under its “21/21” plan — consisting of $21 billion in equity and $21 billion in fixed-income securities.
MicroStrategy currently holds 331,200 Bitcoin worth over $32.7 billion — the most of any public company — <a data-ct-non-breakable="null" href="https://saylortracker.com/" rel="null" target="null" text="null" title="null">according</a> to Saylor Tracker.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/a-perfect-storm-is-brewing-for-bitcoin" rel="null" target="null" text="null" title="null">A perfect storm is brewing for Bitcoin</a> MicroStrategy (MSTR) shares fell over 25% from its highest point of $536.7 to $397.28 when the closing bell rang on Nov. 21.
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 <img alt="Stocks, Trading, MicroStrategy, Michael Saylor" src="https://s3.cointelegraph.com/uploads/2024-11/01935126-50d8-75f8-9469-a6f152cf5b43" title="">
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 MSTR’s change in share price on Nov. 21, including a 5.3% recovery in after-hours trading. Source: Google Finance
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The fall came as Citron Research <a data-ct-non-breakable="null" href="https://x.com/CitronResearch/status/1859608654590202325" rel="null" target="null" text="null" title="null">revealed</a> it hedged a short position on MSTR, suggesting the shares have become “overheated” and that its volume has “completely detached from BTC fundamentals.”
MSTR is still one of the best performers in the US markets in 2024, up 480% year-to-date.
It was the second most-traded stock in the US on Nov. 20 as more investors weighed up the bull case and risks of <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/is-micro-strategy-bubble-what-risk-bitcoin-price" rel="null" target="null" text="null" title="null">Bitcoin exposure through MSTR.</a>
Michael Saylor’s firm contributed to a record-setting <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-stock-etf-trading-volumes-soar-record-high" rel="null" target="null" text="null" title="null">$70 billion trading volume </a>on Nov. 21 from the “Bitcoin Industrial Complex” — consisting of US spot Bitcoin exchange-traded funds and Bitcoin-related stocks like MSTR and Coinbase (COIN).
Bitcoin is currently priced at $98,423 — about 1.5% off cracking the $100,000 milestone, CoinGecko<a data-ct-non-breakable="null" href="https://www.coingecko.com/en/coins/bitcoin" rel="null" target="null" text="null" title="null"> data</a> shows.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-dominance-crypto-predictions-bull-run-benjamin-cowen-hall-of-flame/" rel="null" target="null" text="null" title="null">Bitcoin dominance will fall in 2025: Benjamin Cowen, X Hall of Flame</a>

MicroStrategy completes $3B raise to buy more Bitcoin as MSTR falls 25%

Cointelegraph

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