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    MicroStrategy aims to raise $1.75 billion to expand Bitcoin holdings with convertible notes

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    MicroStrategy plans to raise $1.75 billion via senior convertible notes, which are bonds that can be converted into shares, with the aim to buy more Bitcoin. The company already holds around 331,200 Bitcoin, worth over $30.3 billion. If successful, the new funds could allow MicroStrategy to purchase an additional 19,065 Bitcoin at current prices. This move follows the company’s announcement of a 3-year goal to raise $42 billion for Bitcoin acquisitions. As of November 18, Bitcoin’s value stood at $91,653, close to its record-high of $93,477.

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    MicroStrategy, the company with the most Bitcoin in the corporate world, has plans to collect a whopping $1.75 billion. The endgame? Buy even more Bitcoin, of course. They’ll be doing so through something called senior convertible notes, which basically means they can raise money without paying any interest.

    According to their statement from November 18, they’ll be using the raised funds to get their hands on additional Bitcoin as well as for other general business reasons.

    You might wonder what this ‘senior convertible note’ business is. In simple terms, these are bonds that can be transformed into a predetermined amount of the company’s common shares. MicroStrategy sells them at a discount and when they mature – which will be in 2029 for MicroStrategy’s notes – they’ll return their full face value if they haven’t been turned into shares.

    Following these notes is the common stock, so if for some reason the company finds itself in a financial pickle, these note-holders will be first in line to get paid back.

    Doing the math, with the money from this fundraiser MicroStrategy could purchase 19,065 Bitcoin at their present price. They’ve already got quite the collection – 331,200 Bitcoin, valued at over $30.3 billion.

    The company, under CEO Michael Saylor’s guidance, has seen a 133% increase in their Bitcoin investment strategy. The average purchase price for their Bitcoin haul was $39,292. Meanwhile, MicroStrategy’s stock value, as of November 18, had grown almost 13% to reach a new peak at $374.8, although it slipped a little (0.7%) in after-hours trading.

    Just last month, MicroStrategy announced their 3-year goal to raise $42 billion for buying more Bitcoin through their “21/21” plan. As of now, Bitcoin’s value stands at $91,653, pretty close to its record-high of $93,477 from November 13.

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