MicroStrategy Inc. MSTR was up by 8.45% during pre-market hours on Thursday as Bitcoin BTC/USD approached $98,000 mark, according to Benzinga Pro.
The company also announced on Wednesday that it would increase its convertible senior notes offering to $2.6 billion from the initial $1.75 billion.
The 0% convertible senior notes are due 2029 and will be offered to qualified institutional buyers under Rule 144A of the Securities Act along with a few non-U.S. persons in compliance with Regulation S. The initial conversion price has been set at $672.40 per share with a 55% premium over the Nov.19 closing price.
MicroStrategy expects to raise $2.58 billion in net proceeds which will be used to acquire additional Bitcoin along with general purpose.
The offering is set to close on Nov. 21, pending customary conditions.
Led by Michael Saylor, the company pivoted its strategy towards Bitcoin in 2020 and has since been banking on the surges in the cryptocurrency. Recently, its market capitalization reached $96.73 billion right after Bitcoin crossed the $94,000 mark, surpassing the combined market cap of two of the world’s largest gold mining companies.
As of Wednesday’s close, MSTR’s market cap reached $96.02 billion, marking a 108% increase compared to its valuation on Nov. 4, following the crypto rally spurred by Donald Trump‘s victory.
Bitcoin’s recent rally followed reports of a dedicated cryptocurrency role in Trump’s administration that would act as a bridge between the White House, Congress, and regulatory agencies like the SEC and CFTC.
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Software provider turned bitcoin investor MicroStrategy has taken fundraising for its aggressive push into buying the cryptocurrency to more than $7bn since the US election, as the price hit a new record high. The firm on Wednesday raised the size of a convertible bond offering from $1.75bn to $2.6bn, as it looks to exploit the euphoria in digital assets since Donald Trump’s victory in the US presidential election earlier this month. That comes on top of the $4.6bn it raised in a stock sale last week, which has also gone into buying more bitcoin. MicroStrategy’s shares jumped 15 per cent on Wednesday to a record high, and are up nearly 900 per cent in the past year. MicroStrategy’s post-election buying spree underscores its commitment to buying as much bitcoin as it can since executive chair and founder Michael Saylor put the company on that path in August 2020. Last month the Californian group announced plans to raise $42bn from shares and debt sales in the coming years to plough into the cryptocurrency. “I think it reflects not only the market’s embrace of the company’s approach, but also the mood of the moment: that MicroStrategy has really the right strategy at the right time given the anticipated support of bitcoin and crypto by the Trump administration, particularly as it pertains to a more supportive regulatory environment,” said Mark Palmer, a senior equity analyst with the Benchmark Company. MicroStrategy’s buying has helped drive the price of bitcoin to a record this month. On Wednesday it hit nearly $95,000, having risen 33 per cent since the election of Trump and pro-crypto legislators in Congress. The firm has become the world’s largest corporate owner of the token and has bought more than 50,000 bitcoin since the election, taking its holdings to around 331,000 bitcoin — worth about $31bn. Saylor is “probably the greatest hedge fund manager ever”, said Jad Comair, founder of crypto investment firm Melanion Capital.
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