MicroStrategy Announces Sale of $1.75 Billion Convertible Notes To Fuel Bitcoin Stockpile

Bitcoin Michael Saylor MicroStrategy

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Julia Smith

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Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

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November 19, 2024

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Michael Saylor’s MicroStrategy announced on November 18 that it is planning to sell $1.75 billion in convertible notes to increase its ever-growing Bitcoin holdings.

MicroStrategy To Sell Convertible Notes For Bitcoin Holding

According to the press release, the software firm will offer convertible notes with zero percent interest to interested buyers under rule 144A of the Securities Act of 1933.

“​​MicroStrategy also expects to grant to the initial purchasers of the notes an option to purchase, within a 3-day period beginning on, and including, the date on which the notes are first issued, up to an additional $250 million aggregate principal amount of the notes,” the press release read.

MicroStrategy said it plans to use profits from the aforementioned sales to fuel its Bitcoin holdings and for “general corporate purposes.”

Following the news, MicroStrategy’s stock went up more than 13% as of Monday morning.

Michael Saylor Predicts BTC Will Break $100k

Reports of the Virgina-based company’s latest venture comes amid its recent economic success, outperforming the S&P 500 thanks in large part to its large percentage of investments in Bitcoin.

Under Saylor’s direction, MicroStrategy began slowly accumulating Bitcoin back in 2020.

On Monday, Saylor announced that MicroStrategy had purchased $4.6 billion worth of Bitcoin (equivalent to 51,780 tokens), bringing their total holdings to nearly $30 billion (331,200 tokens).

According to data compiled by Bloomberg, MicroStrategy’s Bitcoin stash now exceeds Nike Inc. and Johnson & Johnson’s total cash holdings.

“I’m planning the $100,000 party,” Saylor told CNBC earlier this month. “I’m thinking it’s probably going to be New Year’s Eve at my house, so I would be surprised if we didn’t go through $100,000 in November or December.”

The former MicroStrategy CEO further claimed that President-elect Donald Trump’s November 5 election is “incredibly auspicious” for Bitcoin and that he does not see “any near-term threats on the horizon” for the cryptocurrency.

Trump, who most recently launched his family’s crypto platform, World Liberty Financial, openly campaigned for a digital asset-friendly regulatory framework on his way to reclaiming the Oval Office.

“We will have regulations,” Trump stated at the Bitcoin 2024 Conference, adding, “but from now on, the rules will be written by the people who love your industry, not hate your industry.”

Meanwhile, Bitcoin continues to climb, hovering around $94,000 on Tuesday.