MicroStrategy Completes $3 Billion Offering of Senior Notes to Buy BTC

MicroStrategy has successfully completed a $3 billion offering of 0% convertible senior notes due in December 2029, with plans to use some or all of the proceeds to purchase more Bitcoin.

The company announced this milestone as its shares experienced a 25% retracement on Nov. 21, according to Google Finance data.

The convertible senior notes carry a 55% premium with an implied strike price of around $672, which is the predetermined price at which holders can buy or sell MicroStrategy’s Class A common stock.

These notes, sold at a discount, will mature to their face value if not converted before the due date.

They also hold seniority over common stock, giving priority to bondholders in case of bankruptcy or liquidation.

If MicroStrategy allocates the entire $3 billion toward Bitcoin purchases, it could acquire approximately 30,600 BTC.

This offering follows a Nov. 18 announcement of a $1.75 billion raise, later increased to $2.6 billion on Nov. 20.

These efforts are part of the company’s ambitious “21/21” plan to raise $42 billion—split evenly between equity and fixed-income securities—to accumulate more Bitcoin.

Currently, MicroStrategy holds 331,200 BTC, valued at over $32.7 billion, making it the largest Bitcoin holder among publicly traded companies, according to Saylor Tracker.

Market Reaction and Performance

MicroStrategy shares (MSTR) dropped over 25%, from $536.7 to $397.28, by market close on Nov. 21.

Despite the decline, MSTR remains one of the top-performing U.S. stocks in 2024, boasting a 480% year-to-date increase.

On Nov. 20, MSTR was the second-most traded stock in the U.S., as investors evaluated its Bitcoin exposure.

Michael Saylor’s firm also contributed to a record $70 billion trading volume on Nov. 21, involving Bitcoin ETFs and Bitcoin-related stocks like Coinbase (COIN).

Bitcoin is currently priced at $98,423, just 1.5% shy of the $100,000 milestone, according to CoinGecko data.