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

Godfrey Benjamin
November 19, 2024
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Breaking: Michael Saylor's MicroStrategy Buys $243M in Bitcoin, MSTR Stock Falls

Highlights

  • MicroStrategy plans to issue additional $1.75 billion of Convertible Senior Notes
  • With options to oversubscribe, MicroStrategy plans to buy Bitcoin with the generated funds
  • Other firms like Metaplanet and Semler Scientific also made recent purchases

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.

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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.

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

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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 

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.