MicroStrategy Incorporated has completed a private offering of approximately $1.01 billion of 0.625% convertible senior notes due 2028. A portion of the proceeds will be used to purchase Bitcoin.
The private offering, which was completed on September 19, targeted institutional investors and offered convertibility into cash or MicroStrategy shares. The company also plans to repay $500 million of Senior Secured Notes by releasing collateral including 69,080 Bitcoin (BTC).
The convertible notes bear interest at an annual rate of 0.625% and mature in 2027. What do you think of this development? We welcome your comments.