Bitcoin holding company Microstrategy (MSTR) experienced a strong rally on Wednesday after announcing an upsized offering of its 0% convertible senior notes due 2029. That has it offering $2.6 billion of these notes to qualified institutional buyers.
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To go along with this, Microstrategy includes a three-day option for buyers to acquire another $400 million worth of notes. This could see the total raised from this offering reach $3 billion. That’s a massive amount, considering the company was initially only planning for a $1.75 billion note offering.
Microstrategy Bets on BTC’s Future
It likely won’t surprise investors in MSTR, but the company intends to use this money to buy more Bitcoin. Microstrategy has been building its BTC reserves, bringing its total holdings to 331,200 tokens following a recent buying spree.
Microstrategy has been betting on Bitcoin since it started buying the crypto in 2020. With Donald Trump elected the next President of the United States, investors are hoping for an administration that will be more friendly to digital assets than the Biden Administration has been. That seems likely with crypto advocate Howard Lutnick named as Trump’s commerce secretary nomination.
Microstrategy’s Bitcoin investments are already paying off. The token has been rallying recently, reaching a new all-time high of $94,000 each. Considering how closely the company has tied itself to BTC, it often climbs alongside the crypto. Investors are seeing that today with MSTR stock up 10.93% as of this writing. That builds on its 684.09% climb year-to-date and its 904.52% surge over the past 12 months.
Is MSTR Stock a Buy?
Turning to Wall Street, the analysts’ consensus rating for Microstrategy is a Strong Buy based on eight Buy ratings over the last three months. This comes with an average price target of $322.38, a high of $450, and a low of $270. That represents a potential downside of 31.83% for MSTR shares.
