Bitcoin
MicroStrategy Proposes $500 Million Convertible Notes to Boost Bitcoin Stock
Nasdaq-listed business intelligence company and bitcoin holder MicroStrategy (MSTR) announced Thursday that it intends to offer an aggregate principal amount of $500 million in convertible senior notes due 2032, the proceeds of which will be used to acquire additional bitcoin and in other corporate matters.
The notes will be senior unsecured obligations of MicroStrategy, and interest will be payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2024. The offering is subject to market conditions and there is no guarantee about when or under what terms it can be completed. Subject to certain conditions, the company may redeem all or part of the notes for cash on or after June 20, 2029.
Individuals determined to qualify as institutional buyers under Rule 144A under the Securities Act of 1933 will be eligible for the private offering.
Microstrategy currently holds 214,400 BTC worth over $14 billion and is the largest publicly listed bitcoin holder. The company began accumulating the leading cryptocurrency in 2020, adopting it as a reserve asset.