MicroStrategy® Incorporated (Nasdaq: MSTR) has revealed plans to raise $500 million to purchase additional bitcoin through a private offering of convertible senior notes due 2031. The offering, subject to market conditions, is directed to qualified institutional buyers under Rule 144A of the Securities Act of 1933.
BREAKING NEWS: MicroStrategy will raise $500 million to buy more bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin pic.twitter.com/EU19xmKB2x
– bitcoin Magazine (@BitcoinMagazine) March 13, 2024
MicroStrategy's notes, senior unsecured obligations, will bear semiannual interest payable on March 15 and September 15, beginning September 15, 2024. Due on March 15, 2031, MicroStrategy will be redeemable on or after of March. 22, 2028, subject to certain conditions.
Investors will have the option to convert the notes into cash, MicroStrategy Class A common stock, or a combination of both. Conversion before September 15, 2030 will occur based on specific events and periods, while after that date conversion will be unrestricted up to two days before the expiration date.
Proceeds from the offering will primarily fund the acquisition of additional bitcoins and support general corporate purposes, according to the announcement. The sale will be restricted to qualified institutional buyers pursuant to Rule 144A, without registration under the Securities Act or other jurisdictional securities laws.
Last week it was announced that MicroStrategy was raising more money to buy more bitcoins. Following that announcement, MicroStrategy acquired 12,000 btc for $821.7 million last Monday.
