MicroStrategy upsizes convertible note offering to $2.6b to buy more Bitcoin

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As a seasoned investor with a knack for spotting trends and a keen eye for promising opportunities, I must admit that MicroStrategy’s latest move has caught my attention. The company’s aggressive Bitcoin buying spree, led by the charismatic Michael Saylor, has not only solidified its position as the largest corporate holder of BTC but also turned MSTR into a stock trading powerhouse, outpacing even Tesla and Nvidia in terms of volume.

MicroStrategy has increased the amount for its recently announced offering of convertible senior notes, from $1.75 billion to a new total of $2.6 billion.

The company, now the top corporate owner of Bitcoin, initiated a significant acquisition of Bitcoin starting in 2020, has declared in a statement that the funds from the upcoming offering will be utilized for purchasing even more Bitcoin. Earlier, MicroStrategy had disclosed intentions to secure $1.75 billion.

In response to increasing the size of the bond issue, Michael Saylor, MicroStrategy’s founder, pointed out that there was significant interest from potential buyers.

MicroStrategy’s MSTR offering consists of zero-percent convertible bonds maturing in 2029, accompanied by a “greenshoe option” worth $400 million. Essentially, this allows initial buyers to potentially buy an extra $400 million of these bond notes within three days following the initial issuance date by MicroStrategy.

According to the company, these notes can be exchanged for cash, shares of MicroStrategy’s Class A common stock, or a mix of both, at MicroStrategy’s discretion.

MSTR stock out-trading Tesla, Nvidia

With MicroStrategy steering the course for Bitcoin, its shares have experienced significant growth. Market figures reveal that MSTR has skyrocketed by 620% this year alone and an impressive 871% over the past year. Over a span of five years, MSTR has shown exceptional performance, outperforming the market by a remarkable 3,159%.

Amid this surge, the MicroStrategy stock has become the “most traded stock in America today”.

Eric Balchunas, a senior ETF analyst at Bloomberg, emphasized this point in a post on X on November 20th. In a year where Tesla and Nvidia stocks have also excelled, it’s MicroStrategy’s stock that is experiencing the highest trading activity.

For quite some time now, only one out of these two stocks has been actively traded (with GameStop being the one that recently broke this pattern). Remarkably, its trading volume is approximately twice that of the S&P 500 index!” The analyst exclaimed, hinting at the unusual market conditions.

Amazing to see myself, as a crypto investor, that $MSTR has taken the lead as the most actively traded stock in America today, outpacing both tech giants like $TSLA and $NVDA. It’s been a while since any stock managed to surpass these two titans (it might have even been $GME last time), and the fact that it’s approximately double the volume of $SPY is truly mind-boggling. These are wild times indeed!

— Eric Balchunas (@EricBalchunas) November 20, 2024

Ever since MicroStrategy initially purchased Bitcoin, they’ve accumulated a total of 331,200 coins. This was accomplished by spending around $16.5 billion, with each bitcoin acquired at an average cost of roughly $49,874. Their most recent acquisition included 51,780 BTC, which cost approximately $4.6 billion and were bought when the average price was $88,627 per coin.

The price of Bitcoin has surged substantially after the company implemented its strategy, prompting other entities to consider holding BTC as part of their reserves. At the moment of this text, Bitcoin was trading at approximately $93,915, reaching a fresh record high of $94,891.

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2024-11-20 21:00