Microstrategy Unveils a Bold Plan to Raise $1.75 Billion Through a Private Offering of Convertible Senior Notes, Doubling Down on Its Commitment to Bitcoin Investments

The business intelligence firm, Microstrategy (Nasdaq: MSTR), publicly listed and based in Virginia, is set to offer these notes, which mature in 2029

Microstrategy (Nasdaq: MSTR) is planning to raise $1.75 billion through a private offering of convertible senior notes, with an option for an additional $250 million, to continue its bitcoin strategy.

The business intelligence firm will offer the notes, maturing in 2029, to qualified institutional buyers in a transaction that is expected to close on March 10, the company said in a statement on Monday.

The notes will carry no regular interest and will be convertible into cash, Microstrategy’s Class A common stock or a combination of both, at the company’s election. Microstrategy will have the option to redeem portions of the notes, beginning in 2026, if at least $75 million of the notes are outstanding.

The proceeds from the offering will be used to acquire additional bitcoin. Microstrategy is already one of the largest corporate holders of the cryptocurrency. Earlier on Monday, the company said it purchased an additional 51,780 bitcoin, bringing its total holdings to 331,200 BTC, valued at billions of dollars at current market prices.

The notes are being offered in a private placement under Rule 144A of the Securities Act and will not be registered. The offering is not being made to the general public. The notes will be subject to a lock-up period, and their terms and the timing of the offering may change.

Microstrategy shares closed up 1.2% on Friday at $262.35 and gained another 1.5% in preopen trading on Monday. They have now risen by about 50% so far this year.

Microstrategy is known for its dual-pronged strategy of providing enterprise analytics services and holding bitcoin in its treasury reserves. The company describes its approach as a combination of operational precision and a long-term commitment to digital assets.

However, the company’s heavy reliance on bitcoin also subjects it to the sharp swings in the market for the cryptocurrency, drawing close scrutiny from analysts and investors.

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