MicroStrategy Completes $3B Convertible Notes Offering to Buy More Bitcoin

Bitcoin Michael Saylor MicroStrategy

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Tanzeel Akhtar

Journalist

Tanzeel Akhtar

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Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk, Bitcoin Magazine and Bitcoin.com.

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November 21, 2024

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MicroStrategy Michael Saylor said it has completed an offering of 0% convertible senior notes due in 2029, raising $3 billion which will be used to purchase more Bitcoin.

The offering includes an initial $2.6 billion, with an additional $400 million issued under an option exercised by initial purchasers. The purchase was finalized on Thursday.

“$MSTR has completed a $3 billion offering of convertible notes at 0% coupon and 55% premium, with an implied strike price of $672,” posted Saylor on the social media platform X.

MicroStrategy said earlier this week it will increase its recently announced sale of $1.75 billion worth of convertible notes to $2.6 billion to upsize its already substantial Bitcoin holdings.

The software firm said it will offer convertible notes with zero per cent interest to interested buyers under rule 144A of the Securities Act of 1933 as well as to non-U.S. buyers under Regulation S of the Securities Act.

Citron Research Discloses Short Position in MSTR

On Thursday, Citron Research said it has taken a short position in an X post. The statement has sent shares of Microstrategy down more than 16%.

Citron Research said: “Now, with Bitcoin investing easier than ever (ETFs, $COIN, $HOOD), $MSTR’s volume has completely detached from BTC fundamentals. While Citron remains bullish on Bitcoin, we’ve hedged with a short $MSTR position.”

MicroStrategy Flips ‘Magnificent 7’ With BTC Buy

MicroStrategy has recorded volumes of $33.27 billion, trailing artificial intelligence (AI) juggernaut Nvidia Corp. NVDA, at one point flipping Nvidia’s trading volume, reports Harvey Hunter from CryptoNews.

The Michael Saylor-led firm surpassed all other members of the “Magnificent 7” group, including the likes of Elon Musk’s Tesla Inc. TSLA and Apple Inc. AAPL.