Catenaa, Friday, November 22, 2024- MicroStrategy announced an increase in its previously declared convertible note offering, raising the sale from $1.75 billion to $2.6 billion on Wednesday.
This move is aimed at further expanding the company’s already extensive Bitcoin reserves, underscoring its continued commitment to cryptocurrency investment under the leadership of Executive Chairman Michael Saylor.
The convertible notes, carrying a zero percent interest rate, are being offered under Rule 144A of the Securities Act of 1933 and to non-US investors under Regulation S. Initial purchasers have also been granted an option to acquire an additional $400 million in notes within three days of issuance. The funds raised will primarily be used for Bitcoin acquisitions, with a portion allocated to general corporate purposes.
Meanwhile MicroStrategy’s stock, MSTR, saw a massive increase in trading volumes on Wednesday, surpassing prominent assets like SPY and TSLA in dollar value.
The surge came after the company made its largest Bitcoin acquisition to date, purchasing approximately $4.6 billion in Bitcoin.
On Wednesday, MSTR’s trading volumes in dollar terms exceeded SPY, one of the largest exchange-traded funds, and even outpaced notable stocks like Tesla (TSLA) and Nvidia (NVDA). Bloomberg highlighted the achievement, noting that it had been years since a stock outperformed TSLA and NVDA in trading volume.
MicroStrategy also achieved a record $21.8 billion in daily trading volume on November 19, surpassing the combined volumes of Apple, Amazon, and Meta.
The surge follows the company’s massive Bitcoin purchases and the success of leveraged MicroStrategy ETFs, which now manage $3.8 billion in assets. Since pivoting to Bitcoin in 2020, MicroStrategy has become the largest corporate holder with over 331,000 BTC. Its stock has outperformed Bitcoin this year, driven by bullish sentiment and all-time highs in cryptocurrency prices.
