MicroStrategy plans to issue five-year senior convertible bonds worth $1.75 billion. The funds will be used for acquiring digital gold and general corporate purposes.
MicroStrategy Announces Proposed Private Offering of $1.75B of Convertible Senior Notes. $MSTR https://t.co/dBJMUvfjj1
— Michael Saylor⚡️ (@saylor) November 18, 2024
The interest rate on the securities will be 0%. They will be issued at a discount. Investors’ returns will be generated by the difference between the nominal value and the purchase price if conversion does not occur before maturity.
From November 11 to 17, MicroStrategy acquired 51,780 BTC for ~$4.6 billion at an average of $88,627.
As a result, the company’s reserves reached 331,200 BTC, for which the firm spent ~$16.5 billion — approximately $49,874 per coin.
On November 18, MicroStrategy shares closed the day up 12.96% at a new all-time high of $384.79. Since the beginning of the year, the securities have risen more than sixfold.
According to 13f.info, the number of institutional holders of MSTR increased from 667 to 729 with a total declared value of $15.3 billion.
This list includes Vanguard Group, Capital International Investors, Morgan Stanley, Goldman Sachs, Bank of America, State Street, and Susquehanna.
MicroStrategy’s Followers
On November 11, medical technology company Semler Scientific announced the purchase of an additional 215 BTC for $17.7 million.
The firm’s total bitcoin balance is estimated at 1,273 BTC, on which $88.7 million was spent.
“We have achieved a yield of 37.3% since adopting the strategy of using the first cryptocurrency as a reserve asset,” said Semler Scientific Chairman Eric Semler.
A new participant implementing a bitcoin strategy is AI company Genius Group.
On November 12, the firm announced a plan to convert $120 million into digital gold and committed to holding 90% of current and future reserves in cryptocurrency. It will also integrate bitcoin payments into its Edtech platform.
On November 18, Genius Group completed its first purchase of 110 BTC for $10 million at an average price of $90,932 per coin.
Simultaneously, management announced plans to launch a podcast to support organizations considering bitcoin as a treasury reserve asset.
“Through the podcast […] more companies […] will receive clear steps to follow,” explained Genius Group.
On November 17, Japanese company Metaplanet announced the issuance of one-year bonds with a guarantee of 1.7 billion JPY (~$11.3 million) to replenish its bitcoin reserves.
*Metaplanet Issues ¥1.75 Billion in 1-year 0.36% Bonds, Proceeds to Fund Additional Purchases of $BTC* pic.twitter.com/Jv3IEylplA
— Metaplanet Inc. (@Metaplanet_JP) November 18, 2024
On November 19, Metaplanet purchased 124.11 BTC.
*Metaplanet purchases additional 124.11 $BTC* pic.twitter.com/4QLVrsGTei
— Metaplanet Inc. (@Metaplanet_JP) November 19, 2024
On November 18, MARA shared plans to purchase the first cryptocurrency through the sale of six-year convertible senior bonds. The mining firm will allocate up to $500 million for these purposes. Management will direct $200 million from the proceeds to repurchase part of the previous similar issue maturing in 2026.
Previously, MicroStrategy presented the “21/21 Plan,” aimed at raising $42 billion over the next three years to purchase bitcoin.