MicroStrategy plans $1.75B raise with 0% notes for Bitcoin

MicroStrategy, the largest corporate holder of Bitcoin, has announced plans to raise $1.75 billion through senior convertible notes at a 0% interest rate to fund more Bitcoin purchases and for general corporate purposes.

The company stated on November 18 that the proceeds would be used to reinforce its ongoing strategy of building substantial cryptocurrency reserves.

These 0% senior convertible notes mean MicroStrategy will not pay regular interest to bondholders; instead, the notes will be sold at a discount and mature at face value by 2029 unless converted beforehand.

The “senior” designation ensures convertible noteholders have priority over common stockholders in case of bankruptcy or liquidation.

If the entire $1.75 billion is directed toward Bitcoin, MicroStrategy could potentially add around 19,065 BTC at current prices.

The company already holds 331,200 BTC, valued at over $30.3 billion, following a recent $4.6 billion acquisition on November 18.

In 2024 alone, the firm has acquired 142,050 BTC, valued at approximately $12.8 billion.

Michael Saylor’s firm has seen a 133% gain on its Bitcoin investment strategy, with an average purchase price of $39,292 per Bitcoin.

MicroStrategy’s Bitcoin acquisitions and the cryptocurrency's price trajectory have been closely monitored since September 2020, showcasing significant growth.

MicroStrategy’s stock (MSTR) climbed nearly 13% to a closing high of $374.8 on November 18, although it experienced a minor 0.7% dip in after-hours trading, according to Google Finance.

Last month, the company outlined its ambitious “21/21” plan to raise $42 billion over three years by balancing $21 billion in equity and $21 billion in fixed-income securities to fund further Bitcoin investments.

At the time of reporting, the Bitcoin (BTC) price was $91,539.43.