MicroStrategy Incorporated (Nasdaq: MSTR) has announced that it intends to raise $500 million from a private offer of convertible senior debt notes due 2031. The placement will mainly focus on well-known buyers of qualified institutions, and the targeted buyers will be used to procure more bitcoin and make corporate purchases.
The unsecured and senior obligations of MicroStrategy will bear semi-annual interest and mature on March 15, 2031. Investors will have the option to convert the notes into cash, MicroStrategy’s class A common stock, or a combination thereof. Until September 15, 2030, conversion terms will depend on specific events and periods.
After this date, conversion will be unrestricted until two days before maturity. Proceeds from the offering will mainly be used to purchase additional bitcoins and intend to cover various general corporate purposes, as the company announced. The offering comprises 144A deals only and constitutes no registration under the Securities Act or other foreign securities laws.
This announcement follows MicroStrategy’s recent acquisition of 12,000 BTC for $821.7 million, signaling the company’s ongoing responsibility to expand its cryptocurrency holdings.
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