MicroStrategy to Offer $500M in Convertible Senior Notes to Buy More Bitcoin
MicroStrategy announced on June 13 a move to increase its bitcoin holdings massively.
According to the announcement, MicroStrategy (MSTR) will issue $500 million in aggregate principal amount of convertible senior notes maturing in 2032. The proceeds from this offering will be used to acquire additional Bitcoin and address other corporate needs.
The notes will be unsecured senior obligations of the company, with interest payable semi-annually on June 15 and December 15, starting December 15, 2024. The offering’s completion is subject to market conditions, and there is no guarantee regarding the timing or specific terms. From June 20, 2029, MicroStrategy may choose to redeem all or part of the notes for cash, subject to certain conditions.
The private offering targets qualified institutional buyers as defined by Rule 144A of the Securities Act of 1933.
https://twitter.com/saylor/status/1801202266768326895
Investors can convert the notes into cash, MicroStrategy’s class A common stock, or a combination of both, providing a versatile financial instrument aligned with the company’s growth and investment strategy. The specific conversion terms, including the rate and price, will be determined at the offering’s pricing.
According to the press release, the convertible senior notes and any shares of MicroStrategy’s class A common stock resulting from conversions will not be registered under the Securities Act or state securities laws, making them ineligible for offer or sale in the United States without registration or an applicable exemption.
Ultimately, MicroStrategy plans to use the proceeds from this offering to strengthen its Bitcoin holdings and support general corporate purposes. This move aligns with Chairman
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