MicroStrategy raises $875M in convertible notes to buy Bitcoin and redeem older notes.
The notes mature in 2028 with a 0.625% interest rate, payable semi-annually in cash.
MicroStrategy plans to redeem $500M of Senior Secured Notes and buy more Bitcoin.
MicroStrategy has announced a convertible senior notes offering worth $875 million. The company had initially planned to sell $700 million, but increased the offering due to high demand. The notes will mature in 2028 with a 0.625% interest rate, paid semi-annually.
Offering Details and How the Money Will Be Used
The convertible senior notes will be sold to institutional investors under Rule 144A of the Securities Act. These notes are unsecured, senior obligations of MicroStrategy that can be converted into cash, class A common stock, or a combination of both. The net proceeds are expected to be $864.1 million, with a potential maximum of $997.4 million if the full option is exercised.
Some of the funds will be used to pay off $500 million of the company’s 6.125% Senior Secured Notes due in 2028. The remaining funds will be used to purchase more Bitcoins and for other company needs.
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