MicroStrategy Incorporated intends to privately issue $700 million in convertible senior notes maturing in 2028, contingent upon market conditions. The business anticipates granting an option to acquire an additional $105 million in notes to first purchasers within 13 days of the notes’ issuance.
The funds will be allocated to redeem its $500 million senior secured notes maturing in 2028 and may also be utilized to acquire further Bitcoin. The unsecured notes will mature on September 15, 2028, and will accrue semi-annual interest in March 2025.
MicroStrategy may redeem the notes for cash commencing in December 2027, subject to specific circumstances that restrict the redemption of outstanding notes.
The business released a redemption notice for its outstanding senior secured notes, intending to redeem them on September 26, 2024, subject to the conclusion of the transaction.
The notes will be available in a private sale, unregistered under US securities regulations, and accessible solely to qualified institutional buyers pursuant to Rule 144A.
This is a component of a comprehensive approach the corporation has implemented to fund its extensive Bitcoin acquisition. Since 2020, MicroStrategy has generated billions through analogous offers, employing a blend of debt and stock to finance its crypto acquisitions.
