MicroStrategy Raises $3 Billion to Buy More Bitcoin
Business intelligence giant to double down on Bitcoin as stock tumbles 25%
MicroStrategy has successfully raised $3 billion through 0% convertible senior notes maturing in December 2029, signaling its unwavering commitment to Bitcoin. The company plans to use a significant portion—or all—of the proceeds to expand its Bitcoin holdings, already the largest among public companies.
The notes, offered at a 55% premium with a strike price around $672, carry no regular interest payments, instead maturing at face value if not converted before 2029. As senior notes, they give holders priority in cases of bankruptcy or liquidation. If fully allocated to Bitcoin, MicroStrategy could acquire approximately 30,600 BTC.
This fundraising effort is part of the company’s ambitious “21/21” strategy, aiming to raise $42 billion in the next three years—split between equity and fixed-income securities—to deepen its Bitcoin exposure. MicroStrategy’s current holdings stand at 331,200 Bitcoin, valued at over $32.7 billion.
Despite this bold move, MicroStrategy’s stock (MSTR) dropped over 25% on Nov. 21, falling from a high of $536.7 to $397.28 by market close. This came after Citron Research disclosed a short position on MSTR, citing the stock’s "overheated" nature and detachment from Bitcoin’s fundamentals.
Nevertheless, MSTR remains a market favorite, up 480% year-to-date, making it one of the top-performing stocks of 2024. It was the second most-traded stock in the U.S. on Nov. 20, reflecting investor interest in Bitcoin exposure through equity.
MicroStrategy’s moves contributed to a record $70 billion trading volume on Nov. 21 across Bitcoin-related assets. Meanwhile, Bitcoin trades near $98,423, edging closer to the $100,000 milestone.
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