TYSONS CORNER, Va. - MicroStrategy Incorporated (NASDAQ:MSTR), known for its investments in Bitcoin, announced its plan to issue $500 million in convertible senior notes due 2032 to qualified institutional buyers, with a possible additional $75 million contingent on initial purchases. This private offering is dependent on market conditions, and there is no guarantee of its completion or terms.
The notes, unsecured senior obligations for MicroStrategy, will accrize interest semi-annually and are set to mature on June 15, 2032, unless repurchased, redeemed, or converted earlier according to their terms. Starting June 20, 2029, MicroStrategy may choose to redeem the notes for cash, in whole or in part, provided certain conditions are met. Noteholders will also have the option to sell their notes back to the company on June 15, 2029.
Conversion of the notes into MicroStrategy’s class A common stock, cash, or a combination thereof, is at the discretion of the company. This conversion is subject to specific conditions and timeframes, with the initial conversion rate and other terms to be established at the time of the offering's pricing.
The company intends to use the net proceeds from this offering to purchase additional Bitcoin and for general corporate purposes. The notes and any shares of class A common stock that may be issued upon conversion will not be registered under the Securities Act or state securities laws and cannot be offered or sold in the U.S. without registration or an applicable exemption.
MicroStrategy positions itself as the world's first Bitcoin development company, leveraging its business operations and financial strategies to support the growth of the Bitcoin network. The company also develops AI-powered enterprise analytics software and Bitcoin applications, aiming to integrate its technological innovations with its Bitcoin-focused business model.
The information provided in this article is based on a press release statement from MicroStrategy Incorporated.
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