- MicroStrategy plans $500 million in convertible senior notes due 2032 for qualified institutional buyers.
- Notes bear semi-annual interest starting December 15, 2024, maturing on June 15, 2032.
- Proceeds intended for additional bitcoin purchases and general corporate purposes.
MicroStrategy has announced that it plans to sell $500 million in convertible senior notes due 2032 in a private offering. The move aims at attracting qualified institutional buyers under Rule 144A of the Securities Act of 1933, subject to market conditions and other relevant factors.
The unsecured senior notes will begin to accrue interest on December 15, 2024, and every June 15 and December 15 afterwards. These notes offer MicroStrategy the opportunity to redeem them for cash starting from June 20, 2029, subject to certain conditions, and they are scheduled to mature on June 15, 2032. Before June 15, 2029, holders of the notes have the option to request that MicroStrategy buy back their notes in whole or in part.
MicroStrategy can choose to exchange the notes for stock in the company, cash, or a mix of the two. Unrestricted conversion is available up until two trading days before the maturity date, however conversion prior to December 15, 2031, will occur subject to certain conditions.
MicroStrategy plans to use the net proceeds from this offering for corporate purposes and to increase its bitcoin holdings. This strategic decision further demonstrates the firm’s dedication to strengthening its digital asset portfolio.
This offering showcases MicroStrategy’s proactive approach to managing capital and making strategic investments, although it is subject to current market conditions. Notably, neither the notes nor any underlying shares of MicroStrategy’s class A common stock have been registered with the Securities Act or any other securities regulatory body.
Therefore, unless registration is required or there is a valid exemption, they cannot be offered or sold within the United States. This latest financial move by MicroStrategy demonstrates the company’s dedication to using capital markets to finance its strategic goals, which might eventually impact the company’s financial environment.
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