MicroStrategy Plans to Raise $500M via Convertible Senior Notes Offering to Finance More Bitcoin Acquisitions

This private offering targets qualified institutional buyers and seeks to bolster the company's resources amid volatile market environments.

Nasdaq-listed business intelligence firm MicroStrategy is set to offer $500 million in convertible senior notes due in 2032 to finance more Bitcoin acquisitions.

The private offering will be available to qualified institutional buyers and is designed to bolster the company’s resources amid volatile market environments.

The offering will also include an option for the initial purchasers to buy an additional $75 million in notes within 13 days of issuance. The convertible senior notes will be unsecured and will mature on June 15, 2032. Interest on the notes will be payable semi-annually, with the first interest payment due on December 15, 2024.

The company will have the option to redeem the notes for cash, either in full or in part, after June 29, 2029, under specific conditions that provide flexibility in financial management.

Investors will be able to convert the notes into cash, MicroStrategy’s class A common stock, or a combination of both. The notes are intended to be a versatile financial instrument that aligns with the company’s growth and investment strategy. The conversion terms, including the conversion rate and conversion price, will be finalized upon the offering’s pricing.

The offering and any subsequent conversion shares of MicroStrategy’s class A common stock will not be registered under the Securities Act or state securities laws. Consequently, they may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.

MicroStrategy said it will use the proceeds to bolster its investment in Bitcoin while addressing general corporate purposes in line with Chair Michael Saylor’s commitment to the asset.

Mentioned in this articleOluwapelumi AdejumoOluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.Andjela RadmilacArmed with a classical education and an eye for news, Andjela dove head deep into the crypto industry in 2018 after spending years covering politics.