MicroStrategy Raises $3 Billion to Continue Buying Bitcoin

The amount raised by MicroStrategy has increased from $1.75 billion to $2.6 billion, then ended at $3 billion in just 3 days.

According to the announcement posted on the morning of November 22, 2024, the software company MicroStrategy said it had completed its latest round of funding, issuing $3 billion in debt bonds with a maturity date of 2029.

The company previously announced the funding round on November 18, hoping to raise an additional $1.75 billion from the bond offering. However, the terms of the offering also gave investors the option to buy more, with a maximum value of $3 billion. This means that all of MicroStrategy's newest investors have exercised their option to buy more bonds from this business.

Although the bonds do not pay interest, they are convertible into MicroStrategy shares at a premium of up to 55% over the current market price.

MicroStrategy said it will use the proceeds to buy more Bitcoin and cover operating expenses.

As reported by Coin68, MicroStrategy said earlier this week that it had made its latest Bitcoin purchase for a record $4.6 billion. At the time of writing, the company is holding 331,200 BTC, worth $32.8 billion, with a purchase cost of nearly $16 billion - meaning the company has nearly doubled its investment.

In late October, MicroStrategy announced its 21/21 Plan, an ambitious plan to raise an additional $42 billion over the next three years to continue going all-in on the world's largest cryptocurrency. Since then, the company has made two more BTC purchases worth a total of $6.6 billion, raising another $3 billion.

MicroStrategy’s MSTR stock has taken off this November, rising from $230 to $543 on November 21, breaking its all-time high since 2000.

However, not everyone is optimistic about MicroStrategy’s prospects. Citron Research, a well-known short-selling fund, said on the evening of November 21 that MSTR’s stock price had “disconnected” from Bitcoin’s fundamentals, and revealed that it had taken a short position on the stock.

MSTR's price therefore fell by 16% in the trading session on November 21, but still recorded a huge trading volume of up to 50 billion USD, contributing to bringing the total volume of crypto-related fund products and company stocks on the US stock exchange to a record 70 billion USD yesterday.