According to BlockBeats, MicroStrategy has announced the pricing of its $700 million 2.25% convertible senior notes due in 2032. The notes will be sold in a private offering to qualified institutional investors who are believed to comply with Rule 144A of the Securities Act of 1933. MicroStrategy has also granted the initial purchasers of the notes an option to purchase up to an additional $100 million notes within 13 days from the date of first issuance.
The amount issued has been increased from the previously announced total of $500 million notes to $700 million. The issuance is expected to conclude on June 17, 2024, subject to customary closing conditions.
The initial conversion rate for the notes will be 0.4894 of MicroStrategy Class A common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of approximately $2,043.32 per share. The initial conversion price represents a premium of about 35% over the volume-weighted average price of MicroStrategy Class A common stock from 9:30 a.m. to 4:00 p.m. Eastern Daylight Time on June 13, 2024, which was $1,513.46. The conversion rate will be adjusted in the event of certain occurrences.