MicroStrategy raises $1.75 billion to acquire more Bitcoin

MicroStrategy announced on the same day that it would purchase $4.6 billion of Bitcoin, bringing its private offering of convertible senior notes to $1.75 billion.

According to the company’s official statement on November 18, MicroStrategy is raising funds to purchase more Bitcoin in the future through special offers that qualify as institutional buyers. The offerings range up to $1.75 billion, with a convertible senior note due December 1, 2029.

The Notes were sold to U.S. buyers pursuant to Rule 144A under the Securities Act and were also offered for sale to certain non-U.S. buyers under Regulation S under the same law. Additionally, the fund is used not only to acquire more Bitcoin but also for general corporate purposes.

Initial purchasers of the notes will have the option to purchase an additional $250 million, the total principal amount of the notes. MicroStrategy will offer notes to be presented in a video webinar on November 19.

MicroStrategy allowed the notes to be converted into Class A common shares, cash, and a combination of both. They last submitted the same notes on September 20, 2024.

MicroStrategy purchased $4.6 billion worth of Bitcoin on the same day

Chief executive Michael Saylor announced in his X post on November 18 that the company had purchased 51,780 Bitcoins (or the equivalent of $4.6 billion). The average price of Bitcoin is $88,627.

This purchase doubled the previous purchase and they now spend $16.5 billion on Bitcoin. As of November 17, the company purchased 331,200 Bitcoins; This corresponds to 1.57% of the total Bitcoin supply.

MicroStrategy’s average Bitcoin price is currently around $49,847, or 47% below Bitcoin’s all-time high of $93,477. They also have unrealized profits of up to $13 billion.

The stock is up 2,400% from $15 to $384 today since the company, headquartered in Tysons Corner, Virginia, announced its first purchase of Bitcoin in 2020.