Firms Ride Bitcoin Wave to Raise Billions From Convertible Debt
- MARA Holdings among followers of MicroStrategy’s playbook
- Bitcoin has gained over 40% since the US presidential election
The MicroStrategy Inc. headquarters in Tysons Corner, Virginia.
Photographer: Stefani Reynolds/BloombergA rally across cryptocurrencies has made winners out of a handful of firms in the sector that followed MicroStrategy Inc.’s playbook of selling convertible bonds, thanks to President-elect Donald Trump choosing a crypto-friendly financier to head the top US financial regulator.
Investors have been piling into companies with ties to the industry, opening the floodgates for fundraising. MicroStrategy’s $6.2 billion worth of convertibles issued this year is just the start, as part of its latest plan to raise $21 billion through fixed income issuance. Other firms also rode the wave, with MARA Holdings Inc. selling more than $2 billion worth — also to buy Bitcoin — and Core Scientific Inc. raising over $1 billion in the year to date.