MicroStrategy® Incorporated (Nasdaq: MSTR) has revealed plans to raise $500 million to buy more bitcoin through a private offering of convertible senior notes due 2031. The offering, subject to market conditions, targets qualified institutional buyers under Rule 144A of the Securities Act of 1933.
BREAKING: MicroStrategy to raise $500 million to buy more #Bitcoin pic.twitter.com/EU19xmKB2x
— Bitcoin Magazine (@BitcoinMagazine) March 13, 2024
The notes, unsecured and senior obligations of MicroStrategy, will bear semi-annual interest payable on March 15 and September 15, commencing September 15, 2024. Set to mature on March 15, 2031, the notes may be redeemed by MicroStrategy on or after March 22, 2028, subject to certain conditions.
Investors will have the option to convert the notes into cash, shares of MicroStrategy’s class A common stock, or a combination thereof. Conversion before September 15, 2030, will occur based on specific events and periods, while after that date, conversion will be unrestricted until two days before the maturity date.
Proceeds from the offering will primarily fund the acquisition of additional bitcoin and support general corporate purposes, the announcement stated. The sale will be restricted to qualified institutional buyers under Rule 144A, with no registration under the Securities Act or other jurisdictional securities laws.
Just last week it was announced that MicroStrategy was raising more money to buy more bitcoin. Following that announcement, MicroStrategy acquired 12,000 BTC for $821.7 million this past Monday.
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