MicroStrategy (MSTR)
Announces
Plan to privately issue $500 million in convertible senior notes to increase Bitcoin holdings and support corporate initiatives.
Issue $500 million in convertible senior notes
Details of convertible notes
Purpose of issue: Of course, to buy Bitcoin
MicroStrategy announced that it will issue $500 million in convertible senior notes in a private transaction, with these notes maturing in 2032.
To further attract initial buyers, MicroStrategy plans to offer the option to purchase an additional $75 million in notes within 13 days of the initial issuance date. This flexibility ensures that the company can adapt to market demand and conditions.
These unsecured senior notes will pay interest on June 15th and December 15th of each year, starting from December 15, 2024. The notes will mature on June 15, 2032, unless redeemed, repurchased, or converted early according to the terms.
Starting from June 20, 2029, MicroStrategy may choose to redeem all or part of the notes in cash, provided that at least $75 million remains outstanding after redemption. Holders also have the right to request repurchase on June 15, 2029. Conversion options include cash, MicroStrategy Class A common stock, or a combination designated by the company. Conversion may be made under certain conditions until December 15, 2031, and anytime within the last two days before maturity.
The proceeds from this issuance will be mainly used to purchase more Bitcoin and for general corporate purposes, aligning with MicroStrategy’s strategic focus on expanding its cryptocurrency holdings.
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