Just-In: MicroStrategy To Raise $1.75B Through Private Offering To Buy More Bitcoin

American business intelligence and software firm MicroStrategy Inc. has announced plans to offer the public up to $1.75 billion of its Convertible Senior Notes. The firm plans to issue these notes through a private offering, subject to market conditions. The company plans to use the funds to buy more Bitcoin (BTC) and for general corporate corporate purposes.

MicroStrategy and Latest Private Offering

According to the firm’s update, the private offering will be offered to qualified institutional investors at a 0% interest rate. The company detailed that the initial purchasers have the option to purchase an additional $250 million worth of the notes. This is subject to a 3-day timeline from the initial date of the first issuance.

The offering will mature on December 1, 2029 unless it is repurchased earlier by the firm. MicroStrategy has a rich history of issuing related debt offering in the past. This is in line with its Bitcoin acquisition strategy.

Confident in its public appeal, MicroStrategy said the notes will form a part of the company’s senior obligation. The company’s Chairman Michael Saylor has offered to educate potential Qualified Institutional Buyers (QIBs) on the proposed offering.

Qualified Institutional Buyers (QIBs) interested in learning more about the proposed private offering of convertible senior notes launched by $MSTR today can register for the live Video Webinar on Tuesday, 11/19, at 9am ET by completing this survey: https://t.co/BxMUPckiGk

— Michael Saylor⚡️ (@saylor) November 18, 2024

Notably, MicroStrategy said it will use the funds from the offering to buy Bitcoin to shore up its portfolio.

The MSTR Boom and Bitcoin Outlook

Despite its primary operation as a business intelligence and software firm, MicroStrategy now ranks as one of the biggest corporate holders of Bitcoin. While the firm started buying Bitcoin in August 2020, it has not stopped with its aggressive acquisitions.

Earlier today, the Michael Saylor-led firm bought a total of 51,780 BTC valued at $4.6 billion. This purchase comes at an average price of $88,627 and effectively pushed the firm’s total holdings to 331,200 BTC. As of now, MicroStrategy ranks in the top 5 list of firms HODLing Bitcoin.

The institutional buyup of Bitcoin by MicroStrategy has also inspired other firms like Semler Scientific and Metaplanet to buy Bitcoin as reserve asset. Overall, this institutional acquisition is helping to boost the price of Bitcoin. At the time of writing, the coin was trading for $91,239.50, up 2.47% in 24 hours.

Read More: Semler Scientific Boosts Bitcoin Bag With New BTC Purchase