Today MicroStrategy Announces Proposed Private Offering of $400 Million of Senior Secured Notes. MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoins.
Michael Saylor, CEO of MicroStrategy also promoted the news using his Twitter account.
MicroStrategy intends to offer, $400 million aggregate principal amount of senior secured notes in a private offering. The private offering is for qualified institutional buyers. The offering is subject to market and other conditions. There can be no assurance as to whether, when or on what terms the offering may be completed.
MicroStrategy Services Corporation is a wholly owned subsidiary of MicroStrategy and certain subsidiaries of MicroStrategy, formed or acquired after the closing of the offering will unconditionally guarantee the notes on a senior secured basis.
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“The notes and the related guarantees will be secured, on a senior secured basis with MicroStrategy’s existing and future senior indebtedness, by security interests on substantially all of MicroStrategy’s and the guarantors’ assets, including any bitcoins or other digital assets acquired on or after the closing of the offering,” said MicroStrategy.
However, it excludes MicroStrategy’s existing bitcoins as well as digital assets acquired with the proceeds from existing bitcoins. MacroStrategy LLC., a newly formed subsidiary of MicroStrategy, will hold their existing approximately 92,079 bitcoins.
