MicroStrategy has recently increased its convertible debt offering to $2.6 billion to fund additional Bitcoin acquisitions and other corporate needs. The offering, which initially targeted $1.75 billion, will be sold privately to institutional buyers under Rule 144A and to select non-US investors following Regulation S. The firm has also given buyers a three-day option to purchase an extra $400 million in notes. The notes are unsecured senior obligations that mature in 2029 and do not bear regular interest.
The initial conversion rate for the notes is 1.4872 shares of MicroStrategy Class A stock per $1,000 of principal, with a conversion price of $672.40 per share, reflecting a 55% premium over the average price on Nov. 19. MicroStrategy expects net proceeds from the offering to be $2.58 billion, with a potential increase to $2.97 billion if buyers fully exercise the additional purchase option. This move coincides with MicroStrategy’s rise into the top 100 US publicly traded companies, now ranking 97th according to CompaniesMarketCap.
MicroStrategy’s stock performance has been impressive, increasing by around 100% in the past month to a two-decade high of over $430. This has positioned the firm favorably against high-performing stocks of AI giants like Nvidia. Early market indications suggest that this trend has continued, with the firm’s pre-market trading rising by around 8%. MicroStrategy remains the largest Bitcoin-holding public company, with over 330,000 BTC worth over $30 billion. This year alone, it has added nearly 150,000 BTC to its holdings, solidifying its position as a leader in corporate Bitcoin adoption.
