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    MicroStrategy’s $3 Billion Convertible Notes Offering to Boost Bitcoin Holdings Despite Share Decline

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    MicroStrategy recently completed a $3 billion offering of zero interest convertible notes, maturing in 2029, with a plan to invest the proceeds in Bitcoin. Despite its shares falling by 25% on November 21, the company aims to raise $42 billion over the next three years as part of its “21/21” Bitcoin investment plan. The company already owns 331,200 Bitcoins, valued at over $32.7 billion. The stock has risen 480% this year, given its popularity as a proxy for Bitcoin exposure.

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    MicroStrategy (MSTR) has wrapped up a $3 billion offering of convertible notes that come with zero interest, which will mature in December 2029. The company plans to use some or all of this money to invest in more Bitcoin.

    The company’s shares dropped by 25% on November 21, as Google Finance’s data showed, but this didn’t dampen their plans. The notes have a premium of 55%, meaning the assumed price to buy or sell MicroStrategy’s common stock is $672.

    These specific notes, known as 0% senior convertible notes, don’t pay regular interest to the people who hold them. Instead, they’re sold at a discounted price and mature to their face value if they aren’t converted prior to the maturity date. If the company faces bankruptcy or liquidation, these senior notes take priority over common stock.

    MicroStrategy could buy approximately 30,600 Bitcoin if it decides to spend the entire $3 billion on Bitcoin. This follows their recent $1.75 billion raising at zero interest, which then increased to $2.6 billion. Their goal is to raise $42 billion in the next three years to invest in Bitcoin as part of their “21/21” plan. They currently own 331,200 Bitcoin, which amounts to over $32.7 billion.

    Despite MicroStrategy’s shares dropping significantly on November 21, it continues to be one of the best-performing stocks in the US market. Up 480% this year alone, it was the second most-traded stock in the US on November 20. The draw for investors? Easy exposure to Bitcoin.

    Bitcoin’s current price is $98,423, which is 1.5% short of the $100,000 milestone.

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