MicroStrategy Incorporated has completed an approximately $1.01 billion offering of 0.625% convertible senior notes due 2028, with plans to use a portion of the proceeds for Bitcoin acquisition.
The private offering, which concluded on Sept. 19, targeted institutional investors and enabled the conversion into cash or MicroStrategy stock.
The company also plans to use part of the funds to redeem $500 million in Senior Secured Notes, releasing collateral, including 69,080 Bitcoin (BTC).
Convertible note details, redemption options
The convertible senior notes are unsecured and carry a 0.625% annual interest rate, payable semi-annually on March 15 and Sept. 15.
According to the official MicroStrategy press release, the notes will mature in 2027 unless they are converted, redeemed, or repurchased earlier.
The publicly traded software company has set the initial conversion rate at 5.4589 shares of class A common stock per $1,000 principal amount of notes.
This conversion translates to roughly $183.19 per share, reflecting a 40% premium over the stockâs price as of Sept. 17.
