MicroStrategy Announces Proposed Private Offering of $1.75B of Convertible Senior Notes.

MicroStrategy intends to use the net proceeds to acquire additional Bitcoin and for general corporate purposes. The offering will be available to institutional investors and certain non-US buyers.

Breaking: MicroStrategy Announces Plan to Raise $1.75 Billion for More Bitcoin Purchases. $MSTR https://t.co/dBJMUvfjj1

MicroStrategy has announced plans to raise $1.75 billion through a private offering of zero-interest convertible senior notes set to mature in December 2029.

The company intends to use the net proceeds to acquire additional Bitcoin and for general corporate purposes. The offering will be available to institutional investors and certain non-US buyers.

Convertible senior notes are a type of debt security that investors can later convert into shares of the company’s stock or cash. This allows investors to benefit from potential stock price growth while receiving downside protection through fixed payments.

In MicroStrategy’s case, the notes will not bear regular interest or increase in principal over time, making them a zero-coupon offering.

Investors will have the option to convert the notes into cash, shares of MicroStrategy’s Class A common stock, or a mix of both. The initial conversion rate will be 143.20 shares of Class A common stock per $1,000 principal amount of notes.