MicroStrategy, which claims to be a Bitcoin development company, has announced the issuance of 0% convertible preferred notes with a premium as high as 55%. As Bitcoin continues to rise, MicroStrategy (MSTR) has become the largest stock traded in the United States today, with its stock price up 591% so far this year, outperforming Bitcoin.
Table of Contents
ToggleMicroStrategy Announces Issuance of $2.6 Billion Convertible Notes
MicroStrategy announced that it will issue $2.6 billion in aggregate principal amount of 2029 Convertible Senior Notes due 2029 in a private placement to qualified institutional buyers, with the following terms:
- Maturity Date: December 1, 2029
- Coupon: 0%
- Conversion Price: $672.4 (approximately 55% premium)
MicroStrategy Trading Volume Surpasses Nvidia and Tesla
According to a post by Bloomberg ETF analyst Eric Balchunas, MicroStrategy (MSTR) has become the largest traded stock in the United States today, surpassing Tesla (TSLA) and Nvidia (NVDA). Balchunas said it has been years since a stock's trading volume has exceeded either of these two stocks, with the last time possibly being GameStop (GME).
In addition, the 2x Longing MicroStrategy ETF MSTU is the 5th largest ETF by trading volume, and MSTX is the 8th largest ETF by trading volume, which is unprecedented, indicating MicroStrategy's tremendous popularity!
(Bitcoin Leveraged on Top of Leverage, the First Leveraged Long MicroStrategy ETF MSTX Launched)
MicroStrategy Surges 591% This Year, Outperforming Bitcoin
MicroStrategy recently announced its "21/21 Plan", aiming to increase its capital by $42 billion over the next three years, including $21 billion in equity and $21 billion in fixed-income securities, which will further support its acquisition of Bitcoin as part of its treasury reserve strategy.
As Bitcoin continues to rise, MicroStrategy not only doesn't have to pay any interest, but the conversion premium of its convertible bonds is also getting higher and higher.
MicroStrategy's stock price has surged 591% so far this year, outperforming Bitcoin's 109%.
