Key Takeaways
- MicroStrategy will redeem $1.05 billion in 2027 convertible notes.
- Holders may convert notes into Class A shares at $142.38 per share.
- The redemption will be completed with shares and cash for fractional amounts.
MicroStrategy Inc. (Nasdaq: MSTR) has issued a notice of redemption for all $1.05 billion of its outstanding 0.0% Convertible Senior Notes due 2027.
The redemption will take place on February 24, 2025, at a redemption price equal to 100% of the principal amount, plus any accrued special interest up to the redemption date.
Conversion terms
Holders of the notes have the option to convert them into MicroStrategy Class A common stock at a rate of 7.0234 shares per $1,000 principal amount (equivalent to a conversion price of $142.38 per share).
The conversion period ends at 5:00 p.m. EST on February 20, 2025.
Settlement method
For conversion, MicroStrategy has opted to settle entirely in shares of its Class A common stock, along with cash for any fractional shares.
The company emphasized that this announcement does not constitute an official redemption notice, which has already been distributed to noteholders via the trustee.
Strategic context
MicroStrategy remains the world’s largest Bitcoin treasury company, integrating Bitcoin into its corporate strategy alongside its AI-powered analytics software.
This redemption reinforces the company’s focus on strategic financial management while providing noteholders exposure to its stock.
