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MicroStrategy offers $500 million of convertible notes to buy more Bitcoin

Published 2024/06/13, 13:50
© Reuters.
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MicroStrategy (NASDAQ:MSTR) said on Thursday it plans to offer $500 million in convertible senior notes due 2032, proceeds of which it will use for additional Bitcoin (BTC) purchases and other corporate purposes.

The offering is subject to market conditions with no guaranteed timing or terms.

“MicroStrategy also expects to grant to the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $75 million aggregate principal amount of the notes,” the company said in the press release.

Starting June 20, 2029, MicroStrategy may redeem all or part of the notes for cash, subject to certain conditions. The private offering will be available to individuals qualified as institutional buyers under Rule 144A of the Securities Act of 1933.

MicroStrategy currently holds 214,400 BTC, valued at over $14 billion, making it the largest public-listed Bitcoin holder.

MSTR shares fell 1.5% in premarket trading.

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