Michael Saylor has announced that MicroStrategy successfully raised $3 billion through a convertible senior note offering.

According to the company’s Executive Chairman, the offering carries a 0% coupon rate and a 55% premium, setting the implied strike price at around $672 per share.

$3 Billion Convertible Notes Offering

In an accompanying press release, MicroStrategy explained that the proceeds from the sale will be used to purchase additional Bitcoin and for general corporate purposes. The $3 billion offering consists of convertible senior notes due in 2029. It also includes $400 million in additional notes, purchased through an option exercised by the initial buyers on November 20, 2024.

The notes are unsecured and will not accrue regular interest. They are also convertible into cash, MicroStrategy’s class A common stock, or a combination of both. The starting conversion rate is 1.4872 shares per $1,000 principal, reflecting a 55% premium over the stock’s average price on November 19, 2024.

Further, while they mature on December 1, 2029, MicroStrategy can redeem them as early as December 4, 2026, under certain conditions. Holders can also require the firm to repurchase them on June 1, 2028, or upon the occurrence of specific events.

After all deductions, the net proceeds from the offering amount to approximately $2.97 billion. This latest offering is part of the business intelligence firm’s larger goal of raising $42 billion over the next three years to fund its Bitcoin acquisition strategy, known as the “21/21” plan.

The plan aims to raise $21 billion in equity and $21 billion in fixed-income securities, all of which will increase the company’s Bitcoin holdings.

Microstrategy’s Position

MicroStrategy’s adoption of Bitcoin was initially a hedge against macroeconomic instability, but the company has since committed to aggressively building a reserve