MicroStrategy Announces $600 Million Convertible Senior Notes Proposing to Buy More Bitcoin
MicroStrategy, a business intelligence company led by Michael Saylor, has announced plans to offer $600 million in convertible senior notes to qualified institutional buyers, with the primary goal of using the proceeds to acquire more Bitcoin for treasury reserves. no see.
MicroStrategy Incorporated (Nasdaq: MSTR), a business intelligence company known for its significant Bitcoin holdings, announced plans to offer $600 million of convertible senior notes due 2030 on March 5, 2024. Institutional buyers under Rule 144A of the Securities Act.
The company also expects to grant the initial purchasers an option to purchase up to an additional $90 million within 13 days from the date of issuance. Interest rates, conversion rates, conversion prices and other terms are determined at the time of pricing.
MicroStrategy plans to use the net proceeds from the bond sale primarily to acquire more Bitcoin, further solidifying its position as a major corporate holder of the cryptocurrency. The company has been steadily accumulating Bitcoin since August 2020, when it first announced its decision to adopt the digital asset as its primary treasury reserve.
As of February 2024, MicroStrategy holds approximately 143,000 Bitcoins, with a total purchase price of $4.2 billion and an average price per Bitcoin of $29,317. The company’s Bitcoin holdings are a core part of its corporate strategy centered on the continued development of the Bitcoin network through financial markets, advocacy and technological innovation.
In addition to its planned Bitcoin acquisition, MicroStrategy plans to use a portion of the proceeds for general corporate purposes. The company continues to develop and deliver industry-leading AI-based enterprise analytics software while promoting its vision of “Intelligence Everywhere.”
The Convertible Senior Notes are MicroStrategy’s unsecured senior notes, with interest payable six times a year in arrears. The notes will mature on March 15, 2030, unless earlier redeemed, redeemed or converted. MicroStrategy may redeem the notes for cash after March 22, 2027, subject to certain conditions.
The announcement comes amid growing interest from institutional investors in Bitcoin and other cryptocurrencies. MicroStrategy’s move to offer convertible senior notes to finance Bitcoin purchases is seen as a vote of confidence in the digital asset’s long-term potential and a reflection of the company’s commitment to a Bitcoin-centric financial strategy.
Image source: Shutterstock
