MicroStrategy issues $875 million in convertible senior notes, intends to use part of the proceeds to purchase Bitcoin

According to Foresight News, MicroStrategy announced the issuance of convertible senior notes with a total principal amount of US$875 million, due in 2028 and an interest rate of 0.625%. The issuance is expected to close on September 19, 2024. MicroStrategy intends to use the net proceeds from this issuance to redeem the entire outstanding principal amount of US$500 million of MicroStrategy's 6.125% senior secured notes due in 2028 (senior secured notes), and use the balance of the net proceeds to purchase additional Bitcoin and for general corporate purposes.