MicroStrategy® Incorporation wants to raise $600 million in adaptable debt by 2030 through qualified institutional buyers. The monies raised will be used to purchase additional bitcoins for general business purposes.
MicroStrategy’s unsecured senior notes will pay semi-annual interest on March 15 and September 15, beginning September 15, 2024. MicroStrategy can redeem the notes for cash on or after March 22, 2027, subject to certain circumstances. Furthermore, holders retain the right to demand buyback on September 15, 2028.
The notes are convertible into cash, MicroStrategy class A common stock, or a combination at MicroStrategy’s discretion. The conversion terms, including rate and price, will be set during pricing.
The notes and shares are sold under Rule 144A, which exempts them from public registration. MicroStrategy gave underwriters the opportunity to purchase up to $90 million in additional notes.
The offering is dependent on market and other variables. No public sale is permitted if registration is needed.
This debt offering enables MicroStrategy to raise capital to expand its significant bitcoin holdings of over 90,000 BTC, which are worth more than $6 billion at current rates. The corporation sees purchasing more Bitcoin as a crucial corporate strategy.
