According to the announcement, the offering was completed in just three days. Initially seeking to raise $1.75 billion, MicroStrategy upsized the sale to $2.6 billion and added an option for initial purchasers to buy an additional $400 million in aggregate principal amount.

Investors found the notes appealing due to their conversion rate of 1.4872 shares per $1,000 principal, equating to $672 per share, a 55% premium over MicroStrategy’s recent stock price.

MicroStrategy raised approximately $2.97 billion after fees and plans to use the proceeds to buy Bitcoin, continuing its strategy of accumulating cryptocurrency. The company currently holds 331,200 Bitcoins, valued at over $30 billion, purchased at an average price of $49,874 per Bitcoin.

Calling itself the “World’s First and Largest Bitcoin Treasury Company,” MicroStrategy stated its treasury strategy provides investors with varying degrees of economic exposure to Bitcoin through a range of equity and fixed-income instruments.

MSTR Stock Fluctuations

MicroStrategy’s stock has surged 500% this year, outpacing Bitcoin’s 110% gain and the S&P 500’s 25% increase. However, Citron Research, a prominent investment firm, criticized the company, claiming its valuation has become “detached from Bitcoin fundamentals.” Following this, MSTR shares dropped 20% on Thursday to close at $397.28.

Bitcoin was trading at approximately $98,800 at the time of reporting.

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