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

MicroStrategy has upsized its recently announced convertible senior note offering, from $1.75 billion to $2.6 billion.

The company, currently the largest corporate holder of Bitcoin (BTC) following a buying spree that started in 2020, said in an announcement that the proceeds of the offering will go into the purchase of more BTC. MicroStrategy previously announced plans to raise $1.75 billion.

MicroStrategy founder Michael Saylor, in a comment on the decision to upsize the note offering, noted demand was high.

The MSTR offering is of 0% convertible bonds that are due 2029 and includes a $400 million greenshoe option, which means MicroStrategy has granted initial buyers the option of purchasing an additional $400 million of the notes’ principal amount. This extends to three days from the date on which the company first issued the notes.

“The notes will be convertible into cash, shares of MicroStrategy’s class A common stock, or a combination of cash and shares of MicroStrategy’s class A common stock, at MicroStrategy’s election,” the company wrote.

MSTR stock out-trading Tesla, Nvidia

As MicroStrategy sets the Bitcoin agenda, its stock has gained massively. Market data shows MSTR is up 620% year-to-date and 871% in the past year. Over the past five years, MSTR has outperformed by a staggering 3,159%.

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

Eric Balchunas, senior ETF analyst at Bloomberg, pointed out this fact in a post on X on Nov. 20. In a year where Tesla and Nvidia stocks have also outperformed, it’s MicroStrategy’s stock that’s seeing the most volume.

“It’s been years since a stock has traded more than one of those two (it may have actually been $GME to last do it). It’s also about double $SPY! Wild times,” the analyst noted.

Since its first Bitcoin purchase, MicroStrategy has acquired a total of 331,200 BTC, spending approximately $16.5 billion to scoop the BTC at the average price of $49,874 per bitcoin. The latest purchase was for 51,780 BTC worth $4.6 billion, with this bought at the average price of $88,627.

Bitcoin price has risen significantly since the company adopted the strategy, with this inspiring several others to add BTC as a treasury reserve asset. The digital asset traded around $93,915 at the time of writing – having hit a new all-time high of $94,891.