MicroStrategy, a leading business intelligence firm, has announced its intention to offer $500 million of convertible senior notes due 2031 to qualified institutional buyers. This move comes after the company successfully raised $800 million through a private offering of convertible notes in March 2024, which was used to acquire additional Bitcoin (BTC).
The new offering is expected to grant the initial purchasers an option to purchase up to an additional $75 million aggregate principal amount of the notes. The notes will be unsecured, senior obligations of MicroStrategy, and will bear interest payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2024.
MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes. The notes will be convertible into cash, shares of MicroStrategy’s class A common stock, or a combination of cash and shares of MicroStrategy’s class A common stock at MicroStrategy’s election.
The offering is subject to market and other conditions, and there can be no assurance as to whether, when, or on what terms the offering may be completed. The notes and any such shares may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
MicroStrategy has been a relentless accumulator of Bitcoin since mid-2020, with a current holding of 205,000 BTC, acquired at an average price of $33,706 per one. The company’s founder and executive chairman, Michael Saylor, has strongly advocated for Bitcoin and its potential as a treasury reserve asset.
In conclusion, MicroStrategy’s decision to offer $500 million of convertible senior notes due 2031 is a strategic move to acquire additional Bitcoin and support its corporate growth. The company’s commitment to Bitcoin as a treasury reserve asset and its ongoing efforts to expand its BTC holdings demonstrate its confidence in the digital currency’s long-term potential.
Disclaimer: The information provided is not trading advice. CryptoNetCap News holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
