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MicroStrategy issues $500 million in convertible notes to buy more Bitcoin
MicroStrategy will offer $500 million in convertible senior notes due 2032 to fund further Bitcoin acquisitions.
This private offering is aimed at qualified institutional buyers and seeks to strengthen the company’s resources in volatile market environments.
As of June 13, MicroStrategy holds more than 1% of the circulating supply of BTC, equivalent to 214,400 BTC, worth approximately $15 billion.
Offering details
MicroStrategy said it will offer initial purchasers an option to acquire an additional $75 million in notes within 13 days of issuance. The convertible senior notes will be unsecured and will mature on or before June 15, 2032. Interest will be payable semi-annually, with the first payment due on December 15, 2024.
The company said it retains the right to redeem the notes for cash, in whole or in part, after June 29, 2029, under specific terms that provide flexibility in financial management.
Investors can convert the notes into cash, into shares of MicroStrategy’s Class A common stock, or a combination of both. It will offer a versatile financial instrument aligned with the company’s growth and investment strategy. The conversion terms, including rate and price, will be defined based on the offer price.
The offer and any subsequent conversion of the shares of MicroStrategy Class A common stock will not be registered under the Securities Act or state securities laws. Accordingly, they may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.
MicroStrategy said it will use the proceeds to strengthen its investment in Bitcoin while addressing overall corporate objectives aligned with the president Michael Saylor’s commitment to good.
Mentioned in this article
Editor Editor 
Andjela Radmilac
Analyst at CryptoSlate
Armed with a classical education and an eye for the new, Andjela dove into the cryptocurrency industry in 2018 after spending years covering politics.