Leading enterprise analytics and Bitcoin investment firm MicroStrategy has announced its intention to offer $700 million in convertible senior notes due 2028 in a private offering.
This announcement was made today based on market conditions and other influencing factors. The offering will be made to institutional buyers pursuant to Rule 144A of the Securities Act of 1933.
In addition, MicroStrategy has granted the initial purchasers an option to purchase an additional $105 million of notes within 13 days of the initial issuance. The senior notes will be unsecured and will pay interest semiannually beginning in March 2025. The notes will mature in September 2028 unless earlier redeemed, repurchased or converted.
Specifically, the notes will be convertible into cash, shares of MicroStrategy's Class A common stock, or a combination of both, with conversion rules and options determined by market events. Full redemption options will be available beginning in late 2027.
The company outlined its plans for the proceeds, planning to redeem $500 million of its existing 6.125% Senior Secured Notes due 2028 and use the remaining funds to purchase more Bitcoin or for other corporate purposes.
*This is not investment advice.