MicroStrategy Announces $500M Convertible Notes Offering

By Bobby Samwell • Friday, March 15 10:16 • Permanent Link

MicroStrategy Incorporated (NASDAQ: MSTR) has announced its intention to offer $500 million aggregate principal amount of convertible senior notes due 2031 in a private offering to qualified institutional buyers. Additionally, the company may grant the initial purchasers of the notes an option to purchase up to an additional $75 million aggregate principal amount of the notes.

The notes will be unsecured, senior obligations of MicroStrategy and will bear interest payable semi-annually in arrears on March 15 and September 15 of each year, starting on September 15, 2024. They will mature on March 15, 2031, unless earlier repurchased, redeemed, or converted in accordance with their terms.

MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes.

The offering is subject to market and other conditions, and there can be no assurance as to whether, when, or on what terms the offering may be completed.

MicroStrategy considers itself the world’s first bitcoin development company and is committed to the continued development of the bitcoin network through its activities in the financial markets, advocacy, and technology innovation. As an operating business, the company uses cashflows as well as proceeds from equity and debt financings to accumulate bitcoin, which serves as its primary treasury reserve asset.

The company also develops and provides industry-leading AI-powered enterprise analytics software that promotes its vision of intelligence everywhere and is using its software development capabilities to develop bitcoin applications.

MicroStrategy believes that the combination of its operating structure, bitcoin strategy, and focus on technology innovation provides a unique opportunity for value creation.

Statements in the press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements." The market has reacted to these announcements by moving the company's shares -4.2% to a price of $1606.27. For more information, read the company's full 8-K submission here.

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