Bitcoin

DeFi

Planet

Note

<div class="intro-text">
 On November 22, Michael Saylor, Executive Chairman of MicroStrategy, <a style="color: #0000ff;" href="https://x.com/saylor/status/1859704181910868139?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1859704181910868139%7Ctwgr%5Efb5710cd6375ea8f9ba19417945dcd1d4c4bfce0%7Ctwcon%5Es1_c10&amp;ref_url=https%3A%2F%2Fcrypto.news%2Fmicrostrategy-gains-2-97b-to-buy-more-btc-after-convertible-note-offering%2F" rel="noopener noreferrer nofollow">announced</a> the successful completion of the company’s offering of convertible senior notes, set to mature on December 1, 2029.&nbsp;
</div>
MicroStrategy netted approximately $2.97 billion in proceeds from the sale of the notes after accounting for purchaser discounts. The funds will be used to acquire more Bitcoin and support the company’s general corporate needs, <a 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="noopener noreferrer nofollow">as stated in the press release.</a>
The notes were sold in a private offering over a three-day period, exclusively available to individuals qualified as institutional buyers. These buyers have the option to convert the notes into cash, shares of MicroStrategy’s Class A common stock, or a combination of both.&nbsp;
The initial conversion rate is 1.4872 shares of Class A stock per $1,000 in principal, equating to a value of approximately $672.40 per share. The notes offer a 55% conversion premium over MicroStrategy’s Class A common stock.
The aggregate principal amount was initially set at $2.6 billion, but it increased to $3 billion after issuing an additional $400 million in notes through a greenshoe option. Interestingly, before the sale, the company <a style="color: #0000ff;" href="https://www.microstrategy.com/press/microstrategy-announces-pricing-of-convertible-senior-notes-11-20-2024" rel="noopener noreferrer nofollow">increased </a>the amount it intended to raise from offering from $1.75 billion to $2.6 billion due to strong demand.
The company clarified that investors can only convert the notes before June 1, 2029, if certain events occur and during specified periods. After that, they can convert the notes at any time until the second scheduled trading day following the maturity date.
This offering follows <a href="https://defi-planet.com/2024/10/microstrategy-announces-ambitious-42-billion-plan-to-expand-bitcoin-holdings-by-2027/" rel="noopener noreferrer nofollow">MicroStrategy’s October 30 announcement of its ambitious “21/21 Plan” to raise $42 billion over three years</a>. The plan aims to secure $21 billion each from equity sales and fixed-income securities to expand Bitcoin reserves. CEO Phong Le highlighted the company’s focus on improving its “BTC Yield,” a key metric measuring Bitcoin holdings relative to diluted shares.&nbsp;
&nbsp;
If you want to read more news articles like this, visit <a style="color: #0000ff;" href="https://defi-planet.com/" rel="noopener noreferrer nofollow">DeFi Planet</a> and follow us on <a style="color: #0000ff;" href="https://twitter.com/PlanetDefi" rel="noopener noreferrer nofollow">Twitter</a>, <a style="color: #0000ff;" href="https://www.linkedin.com/company/defi-planet/" rel="noopener noreferrer nofollow">LinkedIn</a>, <a style="color: #0000ff;" href="https://www.facebook.com/DeFi-Planet-129907662611402" rel="noopener noreferrer nofollow">Facebook</a>, <a href="https://www.instagram.com/defi.planet/" rel="noopener noreferrer nofollow">Instagram</a>, and <a href="https://coinmarketcap.com/community/profile/DeFiPlanet/" rel="noopener noreferrer nofollow">CoinMarketCap Community.</a>
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
The post <a href="https://defi-planet.com/2024/11/microstrategy-raises-2-97b-for-bitcoin-purchase-after-convertible-note-offering/" rel="noopener noreferrer nofollow">MicroStrategy Raises $2.97B for Bitcoin Purchase After Convertible Note Offering</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

MicroStrategy Raises $2.97B for Bitcoin Purchase After Convertible Note Offering

DeFi Planet

Other articles published on Nov 22, 2024

Urgent: An Apple Flaw Puts Your Cryptos At Risk!

Whales Drive Solana Price Beyond $260

Genius Group Now Adopts A New Bitcoin Reserve Strategy

Cardano’s Critical Support Level Could Determine Next Major Rally, Says Analyst

Global asset manager WisdomTree launches XRP ETP on European exchanges

Analyst Who Predicted Shiba Inu’s Rise Says This Coin Will 50x by 2025

Join our free newsletter for daily crypto updates!