MicroStrategy is doubling down on its love for Bitcoin, announcing plans to raise $1.75 billion through what they’re calling a 0% interest senior convertible note. This means they won’t pay any regular interest to those who invest in these notes. Instead, the notes will mature at full value by 2029 or can be converted into shares before that.
The company’s aim with this new cash is clear: buy more Bitcoin. If they spend the entire $1.75 billion at current market prices, they could add another 19,065 Bitcoins to their portfolio. Right now, MicroStrategy already holds 331,200 Bitcoins, which, after their latest purchase of $4.6 billion worth of Bitcoin on November 18, is valued at over $30.3 billion.
This year has been particularly Bitcoin-heavy for MicroStrategy, having purchased 142,050 Bitcoins, amounting to around $12.8 billion at today’s rates. Their strategy seems to be paying off, with a 133% return on their Bitcoin investments, considering they bought in at an average price of $39,292.
The stock market has responded with enthusiasm, with MicroStrategy’s shares soaring nearly 13% to a new closing high of $374.8 on the day of the announcement, although they experienced a slight dip in after-hours trading.
This move is part of a broader, ambitious plan named “21/21” that MicroStrategy revealed last month, where they intend to raise $42 billion over the next three years to continue their Bitcoin acquisition spree. Bitcoin itself is also close to its all-time high, currently trading at $91,653, showing that the market might just be as excited about MicroStrategy’s Bitcoin strategy as they are.
MicroStrategy’s unwavering commitment to Bitcoin as a long-term asset continues to shape their corporate strategy, betting big on the future of cryptocurrency.
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