Key Takeaways
- MicroStrategy announces a $500 million offering of convertible senior notes.
- The notes are intended for qualified institutional buyers and will mature in 2031.
- Proceeds will be used to acquire additional Bitcoin and for general corporate purposes.
MicroStrategy intends to offer $500 million in convertible senior notes, with an additional $75 million option for initial purchasers.
The notes, due in 2031, are aimed at qualified institutional buyers and are subject to market conditions.
Purpose of the offering? To buy more bitcoin
MicroStrategy plans to use the net proceeds from the sale to acquire additional Bitcoin and for general corporate purposes.
The offering is part of a broader strategy to invest in Bitcoin as a key asset.
The company currently holds 205,000 BTC, and does not appear to be slowing its purchases.
Terms and conditions of the notes
The notes will be unsecured senior obligations, bearing interest semi-annually.
They will be convertible into cash, MicroStrategy’s class A common stock, or a combination, with the conversion rate and terms to be determined at pricing.
