Bitcoin
MicroStrategy will buy more Bitcoin after raising $500 million
MicroStrategy intends to offer $500 million in convertible senior notes, with the proceeds used to purchase additional bonds Bitcoin (BTC), the company announced on Thursday. The notes mature in 2032.
On Thursday, MicroStrategy revealed plans to offer qualified institutional buyers the opportunity to purchase unsecured convertible senior notes due 2032.
Stating that the private offering would be subject to market conditions and other factors, the company stated that these notes will bear semi-annual interest in arrears every June 15th and December 15th.
This will remain in effect until maturity on June 15, 2032, unless the notes are repurchased, redeemed or converted in accordance with the terms of the offering.
MicroStrategy could, subject to conditions, redeem for cash all or some of the notes.
“Noteholders will have the right to demand that MicroStrategy repurchase for cash all or part of their notes on June 15, 2029,” the US-based company noted.
MicroStrategy will use the funds to buy more Bitcoin
According to today’s announcement, the notes are convertible into cash, shares of the company’s Class A common stock or a combination of the two.
The reference price in the initial conversion calculation will be the composite volume weighted average of MicroStrategy shares from 9:30 AM to 4:00 PM EDT on the pricing date.
If the sale goes through, MicroStrategy will use the liquid proceeds to purchase more Bitcoin to add to the 214,400 BTC the company held as of April 30, 2024.
The company will also use these resources for other corporate purposes.