MicroStrategy, Metaplanet, and MARA Embrace Debt To Buy More Bitcoin

• MicroStrategy, Metaplanet, and MARA are significantly increasing their Bitcoin holdings.
• Companies are embracing debt to buy more Bitcoins.
• The significant returns achieved by MicroStrategy and Semler Scientific demonstrate the profitability of holding Bitcoin.

MicroStrategy, MARA, and Metaplanet are strategically expanding their Bitcoin (BTC) investments by offering convertible notes to institutional investors.

The companies have already bolstered their Bitcoin holdings and reported strong yields, underscoring their commitment to the digital asset.

MicroStrategy Will Buy More BTC

MicroStrategy (MSTR) said it plans to offer $1.75 billion in 0% convertible senior notes due 2029, with an option for initial purchasers to buy an additional $250 million in notes.

The notes will be unsecured, senior obligations, with no regular interest and no principal accretion, and will mature on Dec. 1, 2029. Conversion will be in cash, MicroStrategy’s Class A common stock shares, or a mix.

Michael Saylor ‘s led company intends to use the proceeds to acquire additional Bitcoin and for general corporate purposes.

On Nov. 18, MicroStrategy announced it acquired 51,780 Bitcoin and achieved a BTC yield of 20.4% quarter-to-date and 41.8% year-to-date. The company now holds 331,200 BTC .

Metaplanet Issues New Debt Offer

Taking a page out of MSTR’s book, Metaplanet, listed on the Tokyo Stock Exchange, has announced the issuance of 1.75 billion yen—equal to $11.3 million—in one-year bonds with an interest rate of 0.36%. The proceeds from this offering will be used to acquire additional Bitcoin.

The company has previously expanded its Bitcoin holdings beyond 1,000 BTC. It currently holds 1,150 BTC, valued at approximately $68 million.

This decision highlights Metaplanet’s increasing commitment to expanding its Bitcoin portfolio. Three weeks ago, Metaplanet expanded its BTC holdings with a $10.4 million investment, adding 156.78 BTC at 10.2 million yen per Bitcoin.

The company’s Bitcoin reserve now stands at 1,018 BTC, worth around $68.8 million, bolstering its position in Asia’s crypto sector.

Metaplanet views bond financing as a strategic step to position itself for growing demand for digital assets, believing that Bitcoin’s value will continue to rise. This also reflects the company’s broader plan to capitalize on the increasing interest in cryptocurrencies.

MARA Offers Another $700M in Notes

MARA Holdings (MARA) announced its plan to offer $700 million in convertible senior notes due 2030 in a private placement to qualified institutional buyers, following a previous $300 million offering.

The unsecured notes will pay semi-annual interest starting in 2025 and mature in 2030. MARA can redeem them starting in 2028, and holders may require repurchase in 2027. The notes are convertible into cash, MARA stock, or a combination, with terms to be determined at pricing.

MARA plans to use up to $200 million of the proceeds to repurchase existing convertible notes due 2026 and the remainder for Bitcoin purchases and general corporate purposes. Hedged holders of the 2026 notes may unwind their positions, potentially affecting MARA’s stock price and its conversion price.

The company may also grant an option to purchase up to $105 million in notes. As of today, MARA holds 25,945 Bitcoin worth $2,38 billion.

Semler Scientific

Semler Scientific (SMLR), a leader in developing technology solutions for healthcare providers addressing chronic diseases, said that, from Nov. 6 to 15, it acquired 215 Bitcoin for $17.7 million, at an average price of $82,502 each.

As of Nov. 18, 2024, the company held 1,273 Bitcoins, with a total acquisition cost of $88.7 million and an average purchase price of $69,682 per Bitcoin.

Semler Scientific reported a BTC yield of 18.9%. Since adopting its Bitcoin treasury strategy in the second quarter of 2024, the company has achieved a BTC yield of 37.3%. The company uses BTC yield as an indicator to evaluate its strategy of acquiring Bitcoin in a way it believes benefits stockholders.

“We are pleased to have achieved a BTC yield of 37.3% since adopting our Bitcoin treasury strategy,” said Eric Semler, chairman of Semler Scientific. “This reflects significant Bitcoin accretion for our stakeholders.”

Stocks Performance in 2024

Rising Bitcoin prices have significantly boosted the stocks of these companies in 2024 as they continue to expand their BTC holdings. MicroStrategy’s stock has surged by 509% this year, rising from $68.51 on Jan. 1 to $384.79 on Nov. 19.

In Tokyo, Metaplanet has seen the most dramatic increase, with its stock soaring by 1,250% to 2,295.00 yen. In 2024, Metaplanet has outperformed the Nikkei 225, delivering a 1,175% return compared to the index’s 14%.

Over three years, Metaplanet has risen by 341%, far exceeding the Nikkei 225’s 29% rise. Over five years, it’s up by 101% compared to the Nikkei’s 64.92%.

On a negative note, MARA Holdings has experienced a 23% decline to $18.10, largely due to disappointing quarterly results published earlier this year.

MARA Holdings posted a third-quarter revenue of $131.6 million, falling short of the consensus estimate  of $151.67 million. However, revenue increased by 35% compared to the same period last year.

The Bitcoin mining company recorded an adjusted loss of $0.34 per share, which was higher than analysts’ anticipated loss of $0.26 per share.