MicroStrategy Raises $3 Billion for Bitcoin Purchases

MicroStrategy has successfully raised $3 billion through the issuance of 0% convertible senior notes, which are set to mature in December 2029. The funds will primarily be used to bolster the company's Bitcoin holdings, which currently stand at 331,200 BTC valued at approximately $32.7 billion. Following the announcement, MicroStrategy's stock experienced a significant decline of over 25%, closing at $397.28, reflecting mixed investor sentiment about its aggressive Bitcoin acquisition strategy. The notes were sold with a conversion premium of 55%, allowing investors to convert them into shares or cash, potentially enabling the purchase of around 30,600 additional Bitcoins. Despite the recent stock drop, MicroStrategy's performance has significantly outpaced market trends, with a notable increase of 480% since January 2024. As Bitcoin approaches the $100,000 mark, MicroStrategy's bold moves continue to position it as a major player in the cryptocurrency landscape.