MicroStrategy, the largest corporate holder of Bitcoin, plans to raise $1.75 billion through senior convertible notes with a 0% interest rate to purchase more BTC.
The company stated on Nov. 18 that it “intends to use the net proceeds from this offering to acquire additional Bitcoin and for general corporate purposes.”
These 0% senior convertible notes will not pay regular interest to bondholders.
Instead, they are sold at a discount and mature to face value if not converted by the 2029 maturity date.
Being “senior,” these notes have priority over common stock in cases of bankruptcy or liquidation.
If MicroStrategy spends the entire $1.75 billion on Bitcoin, it could acquire an additional 19,065 BTC at current prices.
BitcoinTreasuries data reveals that MicroStrategy currently holds 331,200 BTC, worth over $30.3 billion.
This follows a recent $4.6 billion Bitcoin purchase on Nov. 18.
The company has acquired 142,050 Bitcoin this year alone, valued at approximately $12.8 billion at today’s prices.
Michael Saylor’s firm is now up 133% on its Bitcoin investment strategy, with an average purchase price of $39,292 per BTC.
MicroStrategy’s Bitcoin purchases (green) and Bitcoin’s price movements (blue) since September 2020. Source: Saylor Tracker
On Nov. 18, MicroStrategy’s shares surged nearly 13% to close at a record high of $374.80, though they dipped 0.7% in after-hours trading, according to Google Finance.
Last month, the company announced its ambitious “21/21” plan to raise $42 billion over three years—$21 billion in equity and $21 billion in fixed-income securities—to continue accumulating Bitcoin.
Currently, Bitcoin is priced at $91,653, just under 2% below its all-time high of $93,477, achieved on Nov. 13, according to CoinGecko.
