MicroStrategy is doubling down on its Bitcoin-focused strategy with the announcement of a $1.75 billion private offering of 0% convertible senior notes set to mature in December 2029. 

This move comes just as the company revealed today that it recently acquired 51,780 Bitcoin, marking one of its boldest purchases to date.

The note offering targets qualified institutional buyers under Rule 144A and certain international investors under Regulation S, with an option for initial buyers to purchase an extra $250 million in notes shortly after the issuance. 

These unsecured notes do not bear interest but offer flexible redemption and conversion options. Starting in December 2026, MicroStrategy may redeem part or all of the notes, while noteholders have a repurchase option in June 2028.

Crucially, the notes can be converted into cash, class A common stock, or a combination thereof under specific conditions until June 2029, after which conversion rights become unrestricted. 

The conversion rate will be set based on MicroStrategy’s class A stock price at the time of issuance.

Proceeds from this offering are intended for further Bitcoin acquisitions and general corporate purposes. 

MicroStrategy’s aggressive capital-raising efforts and recent acquisitions underline its commitment to leveraging Bitcoin as a core asset. The company has consistently increased its holdings since first entering the Bitcoin market in 2020.

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