MicroStrategy completes $3 billion convertible notes offering to buy more Bitcoin

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MicroStrategy has successfully completed its previously announced offering of $3 billion in 0% convertible senior notes due 2029, according to a company press release.

The company received $2.97 billion in net proceeds, which will be used primarily to acquire more Bitcoin and support general corporate purposes, aligning with MicroStrategy’s strategy of accumulating Bitcoin as its primary treasury reserve asset.

The offering reflects strong demand from institutional investors, with the company initially planning to raise $1.75 billion but increasing it to $2.6 billion due to overwhelming interest.

As the world’s first publicly traded Bitcoin treasury company, MicroStrategy has positioned itself as a leader in the digital asset space, holding more than 331,000 Bitcoin valued at approximately $32 billion at the time of writing.

This approach has attracted investors seeking indirect exposure to Bitcoin, driving MicroStrategy’s stock price up over 500% since the beginning of the year—surpassing every company in the S&P 500.

MicroStrategy’s market capitalization recently surpassed the $100 billion milestone, reflecting investor confidence in its Bitcoin-centric strategy.

However, the company’s market cap has since declined to approximately $85 billion, with its stock down 16% at market close.

Bitcoin’s 120% year-to-date rally has further reinforced the company’s position as one of the standout performers of the year.

The privately sold unsecured notes are convertible into cash, stock, or both at a $672.40 per share price, a 55% premium over the November 19, 2024, stock price.

Starting December 4, 2026, MicroStrategy can redeem the notes for cash if its stock reaches 130% of the conversion price.

Holders can also demand repurchase on June 1, 2028, or during fundamental changes, at 100% of the principal plus accrued interest.

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This article first appeared at Crypto Briefing