The software firm began investing in Bitcoin back in 2020.
In order to expand its already sizeable Bitcoin holdings, MicroStrategy will raise the price of its recently announced sale of convertible notes worth $1.75 billion to $2.6 billion.
MicroStrategy Ups Its Bitcoin Holdings
According to the Wednesday morning statement, the software firm will offer convertible notes with zero percent interest to interested buyers under rule 144A of the Securities Act of 1933 as well as to non-U.S. buyers under Regulation S of the Securities Act.
Given high demand, we upsized our offer of 0% convertible bonds due 2029 from $1.75 billion (+$250 million greenshoe) to $2.6 billion (+$400 million) and priced it at a 55% conversion premium.https://t.co/dUSiwHBcN1
— Chaitanya Jain (@_ChaitanyaJ) November 20, 2024
“MicroStrategy also granted to the initial purchasers of the notes an option to purchase, within a 3-day period beginning on, and including, the date on which the notes are first issued, up to an additional $400 million aggregate principal amount of the notes,” the statement read.
The software company’s latest press release states that the money raised from the sale of convertible notes will be used for “general corporate purchases” and the purchase of more Bitcoin.
Michael Saylor Predicts Boon For Bitcoin
As Bitcoin shot past all-time highs to $94,500 on Wednesday morning, word leaked out about Michael Saylor’s most recent endeavor.
Under Saylor’s leadership, MicroStrategy started investing in Bitcoin in 2020, and on Wednesday, the company’s stock increased by more than 15%.
Since President-elect Donald Trump was elected earlier this month, the token has become more popular, bringing with it a surge of positive sentiment regarding cryptocurrencies.
Trump’s return to the White House will be “incredibly auspicious” for Bitcoin, Saylor told CNBC just last week. The former CEO of MicroStrategy asserted that he does not believe the cryptocurrency will face “any near-term threats on the horizon.”
On Tuesday, reports emerged that Trump had chosen pro-Bitcoin Cantor Fitzgerald CEO Howard Lutnick as his Commerce secretary.
Simultaneously, The Financial Times reported that the Trump Media and Technology Group was looking to buy cryptocurrency marketplace Bakkt.
Trump’s affection for crypto—combined with his promise of a digital asset-friendly regulatory framework—has seemingly generated a wave of excitement about the blockchain sector’s potential.
“I’m planning the $100,000 party,” Saylor told CNBC of Bitcoin earlier this month. “I’m thinking it’s probably going to be New Year’s Eve at my house, so I would be surprised if we didn’t go through $100,000 in November or December.”