MicroStrategy has announced the pricing of its $700 million convertible senior notes offering, up from an initial $500 million. The offering is expected to close on June 17, 2024.
The notes will bear an interest rate of 2.25% per annum and mature on June 15, 2032, with an option for early repurchase, redemption, or conversion. The conversion rate is set at 0.4894 shares of MicroStrategy’s class A common stock per $1,000 principal amount of notes, representing a 35% premium over the stock’s volume-weighted average price of $1,513.46 on June 13, 2024.
MicroStrategy plans to use the proceeds to purchase additional Bitcoin, adding to its current holdings of 214,400 BTC. The company also announced the redemption of $650 million of convertible notes due in 2025, with settlement in shares set for July 15, 2024.
This strategic move underscores MicroStrategy’s continued commitment to Bitcoin acquisition, positioning it as a significant player in the cryptocurrency market for the long term.
