MicroStrategy expands its convertible loan offerings to expand investment opportunities!

Key points:

• MicroStrategy increases its convertible bond offering to $525 million to acquire Bitcoin.
• We pursue an aggressive Bitcoin accumulation strategy totaling over 200,000 Bitcoins.
• CEO Michael Saylor aims to position MicroStrategy as a leading “Bitcoin development company.”

MicroStrategy announced that it is increasing the size of its senior convertible note offering from $500 million to $525 million.

This move signals the company’s continued commitment to the aggressive Bitcoin accumulation strategy it has been pursuing since 2020.

In a recent press release, MicroStrategy stated that it plans to utilize the proceeds from the offering to acquire more Bitcoin in line with its long-standing strategy. The offering consists of 0.875% convertible senior notes due 2031, priced at a private offering price to qualified institutional buyers. The bonds are sold for 100% of the principal amount with an interest rate of 0.875% per annum, payable semiannually.

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MicroStrategy is a leading “Bitcoin development company.”

In particular, Noteholders will have the option to require MicroStrategy to repurchase the Notes at 100% of principal plus interest on September 15, 2028, or upon the occurrence of certain events constituting a fundamental change. Additionally, after March 2028, if certain conditions are met, the Company may repay in cash an amount equal to 100% of the principal plus accrued interest.

The notes may be converted into cash, shares of MS Class A common stock or a combination of the two, at the Company’s discretion. MicroStrategy estimates that the net proceeds from the offering will be approximately $515 million after deducting fees and expenses.

CEO Michael Saylor’s aggressive Bitcoin accumulation strategy has established the company as a major player in the cryptocurrency space. According to Saylor, MicroStrategy holds more than 200,000 bitcoins worth $13 billion and aims to solidify its position as the world’s first “Bitcoin development company.” The company’s actions reflect a broader trend of growing corporate interest in Bitcoin, both as an emerging asset class and as a sovereign bond asset, offering a potential hedge against declines in value and inflation.

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