MicroStrategy Announces 500 Million Convertible Bond Issuance Plan Another Bitcoin Purchase on the Horizon
MicroStrategy (MSTR) announces plan to privately issue $500 million in convertible senior notes to increase its Bitcoin holdings and support corporate initiatives.
Issuance of $500 million convertible senior notes
Details of convertible notes
Purpose of issuance: Obviously to buy Bitcoin
MicroStrategy announced that it will issue $500 million in convertible senior notes in a private transaction, with these notes maturing in 2032.
To attract initial buyers, MicroStrategy plans to offer the option to purchase an additional $75 million in notes within 13 days after the initial issuance date. This flexibility ensures that the company can adapt to market demand and conditions.
These unsecured senior notes will pay interest on June 15th and December 15th each year, starting from December 15, 2024. The notes will mature on June 15, 2032, unless redeemed, repurchased, or converted early according to the terms.
Starting from June 20, 2029, MicroStrategy may choose to redeem all or part of the notes in cash, provided that at least $75 million remains after redemption. Holders also have the right to request redemption on June 15, 2029. Conversion options include cash, MicroStrategy Class A common stock, or a combination designated by the company. Conversions can be made under certain conditions until December 15, 2031, and can be made at any time within two days before maturity.
The proceeds from this issuance will primarily be used to purchase more Bitcoin and for general corporate purposes, aligning with MicroStrategy’s strategic focus on expanding its cryptocurrency holdings.
