MicroStrategy, the American business intelligence and software development company, has recently made headlines with its ambitious plans to acquire even more Bitcoin. In a move to bolster its already substantial BTC holdings, MicroStrategy announced its intentions to raise $500 million in convertible debt offerings. This decision comes on the heels of a recent sale of approximately $800 million in convertible debt offerings, which was used to purchase about 12,000 BTC valued at around $821.7 million at the time. The company seems to be on a full-blown Bitcoin acquisition spree, possibly influenced by the cryptocurrency’s significant bullish rallies and surge to new all-time highs.
As of March 11, 2024, MicroStrategy holds a total of 205,000 BTC, worth over $15 billion based on CoinMarketCap’s Bitcoin price of $73,411. With its latest purchase of 12,000 BTC, MicroStrategy has exceeded the Bitcoin holdings of BlackRock’s Spot Bitcoin Exchange Traded Fund (ETF) and has solidified its position as the leading public company with the largest Bitcoin holdings, surpassing Tesla and Coinbase. This move has propelled the company’s market capitalization to $29.96 billion, reflecting a 10.85% increase in the last 24 hours and ranking it as the world’s 642nd most valuable company by market capitalization.
In the current year alone, MicroStrategy has acquired nearly 16,000 BTC. Interestingly, the company has chosen to raise capital through convertible senior notes this time, marking a shift from the previous year when most of its funds for acquiring Bitcoin were generated from equity. Market Watch’s report indicates that MicroStrategy’s stock value has also experienced a significant increase, with MSTR prices soaring by 145% in just a month.
MicroStrategy intends to sell convertible senior notes to qualified institutional buyers, with plans to grant early purchasers the option to buy up to an additional $75 million worth of notes within 13 days of the initial issuance. The notes will remain unsecured, with interests payable semi-annually starting in September 2024. The company will also have the right to redeem the notes from March 2028, or holders can request a repurchase, with conversion terms determined at the offering’s prices. The proceeds from the $500 million convertible senior notes sale will be used to expand MicroStrategy’s Bitcoin holdings and for general corporate purposes.
MicroStrategy’s strategic decision to increase its Bitcoin holdings through convertible debt offerings showcases the company’s confidence in the long-term potential of cryptocurrency. By surpassing competitors in Bitcoin holdings and solidifying its position as a leading public company in this space, MicroStrategy continues to make bold moves in the digital asset arena. As the company’s market capitalization and stock value continue to rise, it will be interesting to see how MicroStrategy’s Bitcoin acquisition spree unfolds in the coming months.