MicroStrategy has announced the intention to offer $500 million in convertible senior notes due in 2032.

The private offering to qualified institutional buyers would adhere to Rule 144A of the Securities Act 1933 and is “subject to market conditions and other factors.” 

“The notes will be unsecured, senior obligations of MicroStrategy and will bear interest payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2024. The notes will mature on June 15, 2032, unless earlier repurchased, redeemed or converted in accordance with their terms.”

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Proceedings and strategic aims

The net proceeds will primarily be used to acquire additional Bitcoin (BTC), aligning with MicroStrategy’s long-term goal of using BTC as its treasury reserve asset.

The firm expects to grant initial purchasers of notes the option to buy a further $75 million in “aggregate principal amount of the notes.”

“If MicroStrategy redeems fewer than all the outstanding notes, at least $75 million aggregate principal amount of notes must be outstanding and not subject to redemption as of the relevant redemption notice date.”

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