MicroStrategy Plans $500M Convertible Notes to Increase Bitcoin Holdings
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Written by
Yana Levkovich - Updated 2024-06-13 19:05:16
MicroStrategy, a business intelligence firm listed on Nasdaq, announced its intention to offer $500 million in convertible senior notes. The proceeds from this offering will be used to acquire additional bitcoin and to support other corporate initiatives.
These notes will be unsecured and will rank as senior obligations of MicroStrategy. Interest payments will be made twice a year, specifically on June 15 and December 15, starting from December 15 2024. The notes will be due in 2032.
The completion of this offering is subject to market conditions, and there is no certainty regarding the timing or terms of the finalization.
Additionally, starting on June 20, 2029, the company may choose to redeem some or all of the notes for cash, depending on certain conditions.
The private offering will be available to individuals classified as qualified institutional buyers according to Rule 144A of the Securities Act of 1933.
Currently, MicroStrategy holds 214,400 BTC, valued at over $14 billion, making it the largest Bitcoin holder among publicly listed companies.
The firm began its bitcoin acquisition strategy in 2020, adopting the cryptocurrency as a reserve asset. This strategic move has positioned MicroStrategy as a significant player in the cryptocurrency market.
