MicroStrategy® Incorporation intends to place $600 million in adaptable debt in 2030 using qualified institutional buyers. The company will use the funds obtained to buy more bitcoins for general business use.
The unsecured senior notes issued by MicroStrategy will pay semi-annual interest on March 15 and September 15, starting September 15, 2024. MicroStrategy can redeem the notes for cash on or after March 22, 2027, possibly upon specified conditions. Additionally, holders reserve the right to demand repurchase on September 15, 2028.
The notes are convertible to cash, MicroStrategy class A common stock, or a combination at MicroStrategy’s election. Conversion terms, including rate and price, will be determined at pricing.
The notes and shares are offered under Rule 144A, exempt from public registration. MicroStrategy granted underwriters an option to purchase up to $90 million in additional notes.
The offering is subject to market and other conditions. No public sale is permitted where registration would be required.
This debt offering allows MicroStrategy to raise funds to increase its substantial bitcoin holdings of over 90,000 BTC, worth over $6 billion at current prices. The company views acquiring more Bitcoin as a key corporate strategy.
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