MicroStrategy announces the issuance of US$500 million in convertible bonds! Or use it to increase your holdings of Bitcoin?

This site (120BtC.coM): MicroStrategy (MSTR, Micro Strategy) announced plans to privately issue $500 million in convertible senior bonds to increase its holdings of Bitcoin and support corporate plans.

Issuance of $500 million in convertible senior notes

MicroStrategy announced that it will issue $500 million in convertible senior notes in a private transaction, which will mature in 2032.

To further attract initial buyers, MicroStrategy plans to offer the option to purchase up to an additional $75 million in bonds within 13 days of the initial issuance date. This flexibility ensures that the company can adapt to market demands and conditions.

Convertible Bond Details

These unsecured senior bonds will pay interest on June 15 and December 15 of each year, beginning on December 15, 2024. The bonds will mature on June 15, 2032, unless earlier repurchased, redeemed or converted in accordance with the terms.

Beginning June 20, 2029, MicroStrategy has the option to redeem all or a portion of the bonds for cash, provided that at least $75 million remains after redemption. Holders also have the right to request a buyback on June 15, 2029. Conversion options include cash, shares of MicroStrategy Class A common stock or a combination specified by the company. Conversions can be made under certain conditions until December 15, 2031, and at any time up to two days before expiry.

Purpose of the offering: To buy Bitcoin, of course

Proceeds from this offering will be used primarily to purchase more Bitcoins and for general corporate purposes, in line with MicroStrategy’s strategy to expand its cryptocurrency holdings focus.

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