Michael Saylor’s MicroStrategy Plans Another $700 Million Convertible Note Issuance
The company announced just days ago that it has purchased $1.1 billion worth of bitcoin, bringing its holdings to 244,800 tokens.
MicroStrategy (MSTR), a Nasdaq-listed technology development company specializing in business intelligence solutions, announced Monday that it intends to offer $700 million aggregate principal amount of convertible senior notes due 2028.
The company plans to use the proceeds from the offering to redeem $500 million in secured notes with an annual yield of 6.125% due 2028, according to the press release. It will use the remainder of the proceeds to purchase more bitcoin (BTC) and for general corporate uses.
The company also plans to grant the initial purchasers of the notes an option to purchase up to an additional $105 million aggregate principal amount of notes within 13 days of the date of issuance of the first notes. The company said it may redeem all or a portion of the notes for cash beginning on Dec. 20, 2027, subject to certain conditions.
The company, led by CEO Michael Saylor, began buying bitcoin in 2020, adopting it as a reserve asset for its treasury. It has since become the largest corporate buyer of bitcoin, accumulating 244,800 BTC, worth about $14.2 billion at current prices.
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