MicroStrategy upsizes convertible note offering to $2.6b to buy more Bitcoin

MicroStrategy increased its recently announced convertible senior note offering from $1.75 billion to $2.6 billion.

The company, which is now the largest institutional owner of Bitcoin (BTC) after the buying spree that started in 2020, said in its announcement that the proceeds from the offer will go towards purchasing more BTC. MicroStrategy had previously announced plans to raise $1.75 billion.

MicroStrategy founder Michael Saylor stated in his statement about the decision to increase the bond supply that demand was high.

The MSTR offering consists of 0% convertible notes due 2029 and includes a $400 million green shoe option; This means MicroStrategy is giving the initial purchasers the option to purchase an additional $400 million of the principal amount of the note. This extends up to three days from the date the company first issued the bonds.

“The notes will be convertible into cash, shares of MicroStrategy’s class A common stock, or a combination of cash and shares of MicroStrategy’s class A common stock, at MicroStrategy’s election,” the company wrote.

MSTR shares outperform Tesla and Nvidia

As MicroStrategy sets the Bitcoin agenda, its shares have risen significantly. Market data shows that MSTR is up 620% year-to-date and 871% in the past year. Over the past five years, MSTR has performed at a staggering 3.159%.

Amid this rise, MicroStrategy stock has become the “most traded stock in America today.”

Bloomberg senior ETF analyst Eric Balchunas pointed out this fact in a Nov. 20 post on X. In a year when Tesla and Nvidia shares also performed better, MicroStrategy shares saw the most volume.

“It has been years since a stock has traded at more than one of these two (the last one to do this may actually have been the GME dollar). It’s also about double $SPY! Crazy times,” the analyst noted.

Since its first Bitcoin purchase, MicroStrategy has purchased a total of 331,200 BTC and spent approximately $16.5 billion to collect BTC at an average price of $49,874 per bitcoin. The latest purchase was for 51,780 BTC worth $4.6 billion, which was purchased at an average price of $88,627.

Bitcoin price has increased significantly since the company adopted the strategy, which has inspired many others to add BTC as a treasury reserve asset. The digital asset was traded around $93,915 at the time of writing and reached a new all-time high of $94,891.