According to an official press release issued by MicroStrategy, the company plans to issue a total of US$500 million in convertible bonds to qualified institutional buyers in a non-public form, with a maturity date of June 15, 2032, and interest payments twice a year. , payable on June 15 and December 15 respectively, with the bonds convertible upon maturity into cash, MicroStrategy Class A common stock, or a combination of the two, at MicroStrategy's option.
In addition, MicroStrategy also expects to offer initial purchasers a purchase option for up to an additional $75 million of the bonds within 13 days of the date of initial issuance. The offering is subject to market and other conditions, and there can be no guarantee whether, when or on what terms the offering will be completed.
MicroStrategy said it will use the net proceeds from the bond sales to purchase more Bitcoin and for general corporate purposes.
MicroStrategy has been raising funds through the issuance of convertible bonds for years and has used the funds to acquire large amounts of Bitcoin. In March this year, just after the company announced the completion of a US$600 million convertible bond issuance, it immediately announced that it would spend 623 million magnesium to acquire an additional 9,245 Bitcoins, which was equivalent to investing all the net proceeds from the convertible bond issuance into Bitcoin.
As of now, MicroStrategy holds a total of 214,400 Bitcoins, with a total value of approximately US$14.4 billion.
This article MicroStrategy plans to issue another 500 million magnesium convertible bonds to raise funds to continue to increase its position in Bitcoin. First appeared on Zombit.
