MicroStrategy to Offer $500 Million in Convertible Senior Notes Due 2032 π
Business intelligence firm and long-time Bitcoin holder MicroStrategy recently announced plans to offer $500 million aggregate principal amount of convertible senior notes due 2032. The company intends to use the proceeds from this initiative to buy more Bitcoin and for other corporate purposes.
Details of the Offering π
- The proceeds will be used to buy more Bitcoin and for other corporate purposes.
- Initial buyers of the notes will have the option to purchase up to an additional $75 million.
- The notes will be unsecured senior obligations of the company.
- Interest will be payable semi-annually starting from December 15th, 2024.
- The notes will mature on June 15th, 2032.
Redemption and Conversion Details π°
- MicroStrategy can redeem all or part of the notes for cash starting from June 20, 2029.
- Holders can require MicroStrategy to repurchase any portion of their notes for cash on June 15, 2029.
- The notes can be converted to cash, MicroStrategy class A common stock, or a combination of both.
- Until December 15, 2031, the notes will be convertible only upon the occurrence of certain events and during certain periods.
- After December 15, 2031, they will be convertible at any time until the second scheduled trading day immediately before the maturity date.
Determination of Terms and Conditions π
βThe interest rate, initial conversion rate, and other terms of the notes will be determined at the time of pricing of the offering. The reference price used to calculate the initial conversion price for the notes will be the U.S. composite volume weighted average price of MicroStrategyβs class A common stock from 9:30 AM through 4:00 PM EDT on the date of pricing.β
Final Thoughts π€
MicroStrategy’s decision to offer $500 million in convertible senior notes due 2032 demonstrates the company’s commitment to expanding its holdings of Bitcoin and furthering its corporate goals. By utilizing these notes for purchasing more Bitcoin, MicroStrategy aims to strengthen its position in the digital asset market while also meeting other business objectives.
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