In this post. MicroStrategy plans to raise $700 million in convertible bonds.
Bitcoin bulls recently bought $1.1 billion worth of #bitcoin .
In the last 90 days, the #BTC exchange rate has fallen 11%.
#MicroStrategy plans to raise $700 million through the private sale of convertible senior notes due 2028 to qualified institutional investors. The company plans to use the proceeds to redeem $500 million in secured senior notes at 6.125% and purchase bitcoin (BTC).
Bitcoin Bull may also receive an option to purchase an additional $105 million within 13 days of the #issuance of the notes. However, this offer is subject to market and other conditions. The bonds may be redeemable for cash on or after December 20, 2027 under certain conditions.
The bonds are senior unsecured obligations of MSTR, with interest payable semi-annually on March 15 and September 15 of each year, according to MicroStrategy. Payments will begin on March 15, 2025. The notes will mature in September 2028 unless converted, redeemed or prepaid in accordance with their terms.
MicroStrategy may redeem the notes for cash beginning December 20, 2027. If the notes are not redeemed in full, at least $75 million in aggregate principal amount must remain outstanding. Holders of the notes have the right to require MicroStrategy to redeem the notes for cash on September 15, 2027. These notes may be convertible into cash, Class A shares or a combination of both.
the Company intends to redeem the entire principal amount of its existing $500 million aggregate principal amount of 6.125% senior secured notes due 2028. The redemption is scheduled for September 26, 2024 and will be priced at 103.063% of the principal amount, after adding approximately $523.8 million of accrued interest.
The proceeds from the new offering will be used to redeem the senior secured notes.
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