MicroStrategy Announces Additional $1.75 Billion Fundraise for Bitcoin

Software company and major Bitcoin investor, MicroStrategy, has announced plans to raise an additional $1.75 billion for Bitcoin purchases, less than 24 hours after revealing its latest $4.6 billion acquisition.

The $1.75 billion will be raised through senior convertible notes with a 0% interest rate. This funding will be utilized for "acquiring additional bitcoin and general corporate purposes," MicroStrategy stated in an official statement on November 18.

MicroStrategy's Extensive Bitcoin Holdings

At current market prices, MicroStrategy could potentially acquire an additional 19,065 BTC with the allocated $1.75 billion. This would significantly increase their existing crypto holdings.

According to Bitcoin Treasuries, MicroStrategy currently holds 331,200 BTC, valued at over $30.3 million. This is over ten times more than the second-largest institutional Bitcoin holder, Marathon Digital Holdings.

Largest Bitcoin Purchase Yet

MicroStrategy recently announced its largest Bitcoin purchase to date, amounting to $4.6 billion for 51,780 BTC.

Convertible Notes Funding

The convertible notes offered by MicroStrategy in the $1.75 billion funding round do not include regular interest payments for bondholders. Instead, they will be sold at a discount and mature to face value if not converted before their maturity date in 2029. Additionally, these notes give holders high priority in the event of a MicroStrategy bankruptcy or liquidation.

Expanding Holdings Amid Price Fluctuations

MicroStrategy's latest $4.6 billion purchase was made despite Bitcoin's recent establishment of an all-time high of $93,434.36. Despite this peak, BTC has experienced a correction and currently trades at $91,710.70.

The recent MicroStrategy Bitcoin buy was funded through a share sale under an agreement with several companies, including TD Securities and SG Americas Securities.