MicroStrategy Plans $1.75B Raise for More Bitcoin

The business intelligence and software company disclosed Monday evening that it intends to offer zero-interest senior notes maturing in 2029 to qualified institutional buyers. Proceeds from the offering will fund additional Bitcoin purchases—potentially up to 19,000 BTC—and general corporate purposes.

This announcement follows MicroStrategy’s $4.6 billion Bitcoin buy earlier in the day, bringing its total holdings to 331,200 BTC, now worth over $30 billion at current prices.

MicroStrategy’s Evolving Strategy

MicroStrategy has steadily accumulated Bitcoin since 2020, with data from MSTR Tracker revealing it now owns 1.58% of Bitcoin’s total maximum supply of 21 million coins. The company’s average acquisition cost stands at $49,874 per BTC, significantly below Bitcoin’s current price of $91,717.

The newly issued convertible notes, which won’t pay regular interest, can be converted into cash, MicroStrategy stock, or a mix of both. Additionally, the company may offer an extra $250 million in notes to initial buyers within three days.

Wall Street Backs Bitcoin’s Biggest Holder

MicroStrategy’s bold Bitcoin moves have caught the attention of major institutional players. Recent filings show:

• Vanguard Group holds 15.9 million shares in MicroStrategy.
• Capital International Investors owns 15.8 million shares.
• Morgan Stanley increased its stake to 8.8 million shares, a 1,126% jump from the previous quarter.

This growing support underscores confidence in MicroStrategy’s strategy as the company continues transforming into what it calls the “world’s largest Bitcoin treasury company.”

Bitcoin Boosts MicroStrategy’s Stock

MicroStrategy’s stock, MSTR, has soared by 485% this year, compared to Bitcoin’s 112% rise. While Bitcoin hit multiple all-time highs, most recently topping $93,000, MicroStrategy’s stock closed Monday at $384, with a market capitalization of $78 billion.

Despite its success, MSTR remains more volatile than Bitcoin, with data from Portfolios Lab showing a volatility of 32% compared to Bitcoin’s 16%.

The Ambitious 21/21 Plan

In October, MicroStrategy unveiled its “21/21” initiative, an ambitious plan to raise $42 billion over three years for Bitcoin acquisitions, split evenly between stocks and bonds. The latest $1.75 billion convertible notes offering is another step toward achieving that vision.

A webinar on Tuesday morning will provide more details about the offering, though attendance is limited to qualified institutional buyers.