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MicroStrategy to Issue $500M Convertible Notes, Eyes Bitcoin Purchase

Published 06/13/2024, 09:26 PM
Updated 06/13/2024, 10:15 PM
© Reuters.  MicroStrategy to Issue $500M Convertible Notes, Eyes Bitcoin Purchase
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  • MicroStrategy’s $500M notes offering will fund significant Bitcoin purchases and corporate purposes.
  • The flexible conversion options for MicroStrategy’s notes add appeal for investors seeking diverse returns.
  • Market conditions will influence the additional $75M in notes offered, impacting MicroStrategy’s funding strategy.

MicroStrategy Incorporated, a prominent business intelligence firm and major Bitcoin holder, announced a $500 million private offering of convertible senior notes due in 2032, with proceeds primarily intended for further Bitcoin acquisition.

The offering, targeted at qualified institutional buyers, will be conducted under Rule 144A of the Securities Act of 1933. MicroStrategy may also allow initial purchasers to buy up to an additional $75 million in notes within 13 days of issuance, depending on market conditions.

The notes, which are unsecured and senior obligations, will bear semi-annual interest payable on June 15 and December 15 each year, starting from December 15, 2024. They mature on June 15, 2032, but may be repurchased, redeemed, or converted earlier.

Beginning June 20, 2029, MicroStrategy can repay the notes in cash if at le…

The post MicroStrategy to Issue $500M Convertible Notes, Eyes Bitcoin Purchase appeared first on Coin Edition.

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