Software and business intelligence company MicroStrategy has released the price of its offering of an aggregate principal amount of $525 million of 0.875% Senior Convertible Notes.
Software and business intelligence company MicroStrategy has released the price of its offering of an aggregate principal amount of $525 million of 0.875% Senior Convertible Notes.
Another MicroStrategy Bitcoin bet in the works
The notes, which mature in 2031, will be offered at a public meeting only to qualified institutional buyers. The initial purchasers of the notes will be granted an option to purchase, within 13 days from and including the date the notes were first issued, up to an additional aggregate principal amount of $78.75 million of the promissory notes.
The Company is offering convertible senior notes to eligible purchasers, which will then be convertible into cash, MicroStrategy Class A common stock, or a combination of cash and MicroStrategy Class A common stock, but all at MicroStrategy’s discretion.
MicroStrategy’s goal with these notes is focused on buying more Bitcoin to keep its bullish reserve asset strategy alive. The company remains one of the top corporate firms with the largest stake in BTC, with only BlackRock competing with it in terms of total assets locked.
MicroStrategy’s Bitcoin holding is currently around 203,000 BTC after a recent purchase of 12,000 Bitcoin units, while BlackRock’s stash has surpassed the 205,000 threshold.
Long term focus
Meanwhile, the expected maturity date for the notes is March 15, 2031. The only exception is if the notes were previously repurchased, redeemed or converted in accordance with their terms. Until September 15, 2028, bondholders will be able to demand MicroStrategy repurchase their bonds. Its conversion is similar to previous sales of $500 million.
MicroStrategy’s renewed optimism to buy more Bitcoin is due to the gains it has made in recent weeks, which justifies its commitment to an asset described as risky by critics. With more Bitcoin in the pipeline, proponents argue that MicroStrategy’s bullish stance could eventually be contagious across the board.
